This is about closed-source extensions created by Microsoft, and those always had strings attached which Cursor apparently ignored.
I would rather ask Cursor why they decided to fork VSCode when they could simply have written yet another VSCode extension to provide the same functionality. Seems shady AF tbh.
Why is it shady to fork an open-source project? If they didn't want forks they should have released it under a non-open-source license.
Doesn’t Microsoft handicap extensions by not giving them the full access that co-pilot gets? You’d be crazy to compete when the other side literally owns the platform.