Hey, thanks for the feedback.
I get the frustration. Updating the base VS Code version is something users really expect, especially in a major release.
Unfortunately, a VS Code rebase isn’t in the near-term plans right now. The team is aware of this request. We’ve seen similar feedback before, and Colin replied in a related thread: Any plans to keep up with VSCode?! - #4 by Colin. For now, the main focus is updating the Cursor-published versions of Microsoft extensions to improve compatibility.
If there are specific extensions that don’t work because of the older VS Code version, let us know. That’ll help the team prioritize.