Bug: Rules from .continue/rules/ listed as Prompts instead of Rules (related to #8885)

[houssemzaier]

Hi Continue team 👋

I'm experiencing an issue where Rules defined under .continue/rules/ are incorrectly displayed as Prompts in the Continue configuration panel, instead of being applied implicitly as rules.

Environment:

• Continue: v1.3.29
• IDE: VS Code / VSCodium
• OS: macOS (Apple Silicon)
• Tested with multiple models — issue is model-independent

Steps to reproduce:

1. Place .md rule files in .continue/rules/
2. Open the Continue configuration panel
3. Click the Rules icon
4. Scroll to the "Prompts" section
5. Observe that rule files appear listed as Prompts

This persists regardless of YAML frontmatter content in the rule files.

Related issue: This appears to be the same bug reported in #8885 ("Some rules are treated as prompts"), which is still open.

Could you confirm whether files under .continue/rules/ should ever appear as Prompts, or if Rules and Prompts are meant to be strictly separated?

Happy to investigate and propose a fix if this is confirmed as a bug. Thanks!