Turns out Cursor got stuck using TYPESCRIPT for .TSX files… ( instead of TYPESCRIPT JSX )
How I fixed this…
1 - Uninstall Cursor
2 - Remove everything as per instructions → Cursor - Build Software Faster and also Uninstall Visual Studio Code
3 - Re-install Cursor
4 - Manually changed the .tsx association to TYPESCRIPT JSX by clicking the blue section lower right corner, then in the top “configure file association for .tsx” then select TYPESCRIPT JSX then re-start cursor