Should be an easy fix, allowing groundbreaking functionality – to the extent that we even consider at the moment whether to stay on VS Code because of this feature.
Huh, indeed, it works on 1.0.5936. Thank you @deanrie for the hint towards specific solution – my brief search didn’t revealed past discussions on this topic…
Hopefully someone still might look why problem appeared with latest Live Share versions, so Cursor still maintains this feature over time.