Updated to v2.6.21 Universal — cursor-socket out/ folder still missing.
Had to reapply symlink workaround manually after update wiped it.
Symlink + disabled indexing via settings.json still required.
Fix has not landed in 2.6.21.
However: after reapplying both workarounds on 2.6.21,
Extension Host is now stable — no more crash popups.
So the symlink + indexing fix combination works as a workaround,
but needs to be manually reapplied after every Cursor update.
A permanent fix in the installer would be appreciated.
Will keep you guys updated