Error message: "extension may be used only with Microsoft Visual Studio Code and other Microsoft affiliates' products."
Why I think this matters:
Yes, Microsoft's license does explicitly state that its extensions (and the entire VSCode plugin registry, really) are for use in VSCode only. So technically, this move is within their rights.
Cursor has likely been using a workaround to access MS's extension catalog. But now it looks like Microsoft is enforcing those restrictions — at least for C, C++ and C# Dev Kit.
What worries me is whether this is just a one-off... or if Microsoft is testing the waters and might start blocking other key extensions (TypeScript, Python, etc.) or even ban Cursor entirely from the registry.
PS:
It’s kinda wild that Cursor — a well-funded company directly competing with MS (re: Copilot) — is relying on Microsoft’s infrastructure in a way that’s clearly against the TOS. They’re basically operating with an axe hanging over their head.
PPS: Windsurf next?
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UPD: screenshot can be viewed at https://i.imgur.com/WTyQMFk.png
UPD2: reddit threads
https://www.reddit.com/r/cursor/comments/1jrl981/microsoft_has_released_their_own_cursor/
https://www.reddit.com/r/dotnet/comments/1jtxsxd/as_of_6_hours_ago_c_dev_kit_is_not_working_in/
https://www.reddit.com/r/cursor/comments/1jr1fbq/cc_vscode_extension_is_getting_blocked_on_cursor/