https://www.cursor.com/how-to-install-extension
Which is basically an article to use an extension in a way that’s basically forbidden use.
If that was not bad enough the editor also told you to install certain extensions if certain file extensions were used that were also against the tos of the extension.
And basically cursor can just be using the vsix marketplace from eclipse, which does not contain restricted extensions.
What they do is at least shady.
And yes I’m not a fan of the fact that Microsoft does this, even worse they closed the source (or some parts of it) of some extensions as well, which is also a bad move (but their right)