GitHub’s April 2025 release notes cover the agent-mode updates. Copilot closed much of the feature gap that kept me in Cursor: more models (including Claude 3.5/3.7 Sonnet), image upload in chat, and agent mode for multi-file edits that iterate on errors.
That last one was Cursor’s main draw for me. Multi-file changes without babysitting every hunk.
The Extension Problem
Microsoft also tightened language on some VS Code extensions. The C/C++ runtime license restricts use to specified Microsoft products and services. In practice that means parts of the ecosystem stop working cleanly if you leave vanilla VS Code for Cursor.
Check extension host restrictions Some Microsoft-published extensions refuse non-VS Code hosts. Check before you migrate a C++ or platform-heavy workspace.
I still use Cursor for deep project context. Copilot is fine when I am already in VS Code. Agent mode made the products look more alike, but the extension restriction exposed the more important difference: Microsoft owns both the editor and parts of the toolchain around it.
The model list can be copied. Control of the environment cannot.
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