Yes, this is expected behavior. The npm package figma-developer-mcp is a community project with a limited set of tools. The full toolset, including use_figma and other tools from Tools and prompts | Developer Docs, is only available through the remote MCP server https://mcp.figma.com/mcp.
Unfortunately, connecting to remote MCP servers with OAuth doesn’t work in Cursor right now. That’s the same bug from that thread. The team is aware, but there’s no ETA yet.
For now, using the local figma-developer-mcp setup is the only working workaround, but it has limited functionality. Sorry for the inconvenience.