fix: update readme

Author: strausr

README.md

@@ -44,10 +44,10 @@ During setup, you'll be asked which AI coding assistant(s) you're using. The CLI
 
 - ✅ **Cursor** → `.cursorrules` + `.cursor/mcp.json` (if selected)
 - ✅ **GitHub Copilot** → `.github/copilot-instructions.md`
-- ✅ **Claude Code (VS Code extension)** → `.claude`, `claude.md` + `.cursor/mcp.json` (if selected)
+- ✅ **Claude Code** → `CLAUDE.md` + `.mcp.json` (if selected)
 - ✅ **Generic AI tools** → `AI_INSTRUCTIONS.md`, `PROMPT.md`
 
-**MCP Configuration**: The `.cursor/mcp.json` file is automatically generated if you select Cursor or Claude, as it works with both tools.
+**MCP Configuration**: Cursor and Claude Code use different config paths. If you select **Cursor**, the CLI writes `.cursor/mcp.json`. If you select **Claude**, it writes `.mcp.json` in the project root. Each tool only reads its own path, so both files are generated when you select both.
 
 These rules help AI assistants understand Cloudinary React SDK patterns, common errors, and best practices. The generated app also includes an "AI Prompts" section with ready-to-use suggestions for your AI assistant.
 

cli.js

@@ -141,7 +141,7 @@ async function main() {
         choices: [
           { name: 'Cursor', value: 'cursor' },
           { name: 'GitHub Copilot', value: 'copilot' },
-          { name: 'Claude Code (VS Code extension)', value: 'claude' },
+          { name: 'Claude Code', value: 'claude' },
           { name: 'Other / Generic AI tools', value: 'generic' },
         ],
         default: ['cursor'],
@@ -262,18 +262,21 @@ async function main() {
       writeFileSync(join(projectPath, 'PROMPT.md'), aiRulesContent);
     }
 
-    // Generate MCP configuration if using Cursor or Claude (MCP works with both)
-    if (aiTools.includes('cursor') || aiTools.includes('claude')) {
-      const mcpTemplatePath = join(TEMPLATES_DIR, '.cursor/mcp.json.template');
-      if (existsSync(mcpTemplatePath)) {
+    // Generate MCP configuration: Cursor uses .cursor/mcp.json, Claude Code uses .mcp.json in project root
+    const mcpTemplatePath = join(TEMPLATES_DIR, '.cursor/mcp.json.template');
+    if (existsSync(mcpTemplatePath)) {
+      const mcpContent = replaceTemplate(
+        readFileSync(mcpTemplatePath, 'utf-8'),
+        templateVars
+      );
+      if (aiTools.includes('cursor')) {
         const cursorDir = join(projectPath, '.cursor');
         mkdirSync(cursorDir, { recursive: true });
-        const mcpContent = replaceTemplate(
-          readFileSync(mcpTemplatePath, 'utf-8'),
-          templateVars
-        );
         writeFileSync(join(cursorDir, 'mcp.json'), mcpContent);
       }
+      if (aiTools.includes('claude')) {
+        writeFileSync(join(projectPath, '.mcp.json'), mcpContent);
+      }
     }
   }
 
@@ -291,9 +294,8 @@ async function main() {
     if (aiTools.includes('copilot')) console.log(chalk.gray('   • GitHub Copilot: .github/copilot-instructions.md'));
     if (aiTools.includes('claude')) console.log(chalk.gray('   • Claude: CLAUDE.md'));
     if (aiTools.includes('generic')) console.log(chalk.gray('   • Generic: AI_INSTRUCTIONS.md, PROMPT.md'));
-    if (aiTools.includes('cursor') || aiTools.includes('claude')) {
-      console.log(chalk.gray('   • MCP (Cursor/Claude): .cursor/mcp.json'));
-    }
+    if (aiTools.includes('cursor')) console.log(chalk.gray('   • MCP (Cursor): .cursor/mcp.json'));
+    if (aiTools.includes('claude')) console.log(chalk.gray('   • MCP (Claude Code): .mcp.json'));
     console.log('');
   }