I downloaded and run Cursor for the first time when this "error" happened. Turned out I was supposed to use agent instead of inline Cmd+K command because inline has some limitations while agent not so much.
Nevertheless, I was surprised that AI could actually say something like that so just in case I screenshotted it - some might think it's fake, but it's actually real and makes me think if in future AI will start giving attitudes to their users. Oh, welp. For sure I didn't expect it to blow up like this since it was all new to me so I thought it maybe was an easter egg or just a silly error. Turned out it wasn't seen before so there we are!
Cheers