tbh I'm glad about this, even if it breaks Cursor and other unnecessary forks of VSC. there's a difference between forking something to improve it and give back to the community under the same license vs what Cursor is doing.
Although there are "unnecessary forks" of VSC, it also breaks the necessary ones like VS Codium which is the truly open-source version of VS Code which is MIT licensed instead of the shitty license Microsoft's VS Code is distributed under while packing tons of telemetry and spyware.