Almost certainly a version mismatch. That CSS is Tailwind v4 syntax, but your project was scaffolded with Tailwind v3 (the tailwind.config.ts is the giveaway). v3's PostCSS plugin doesn't understand @import "tailwindcss", so it silently outputs nothing useful.
Check:
npm ls tailwindcss
cat postcss.config.*If you see 3.4.x and plugins: { tailwindcss: {}, autoprefixer: {} }, upgrade instead of downgrading shadcn:
npm i -D tailwindcss@latest @tailwindcss/postcss tw-animate-css// postcss.config.mjs
export default { plugins: { "@tailwindcss/postcss": {} } };Then delete tailwind.config.ts (v4 reads the theme from the @theme inline block shadcn already put in globals.css) and restart the dev server. Don't let Cursor "merge" the two configs, that's how you get half-working colors.