The issue is on the Prettier VS Code plugin side (not a Cursor bug)
This is an issue with Cursor not supporting the same Extension API as VSCode. I am only one person and I have a day job, nor do I actively use Cursor (or any of the other vscode forks) so my ability to work on this is limited. Without either Cursor fixing their API to match VSCode or the Cursor team contributing fixes for this, it’s unlikely this is going to be fixed any time soon.
I’m also gonna quote you from here:
You’ve identified a real limitation… This means that while most extensions targeting VSCode 1.105 will work, ESM-specific features requiring runtime support won’t function. I’m escalating this to the team as it’s a valid compatibility gap for extension developers.
In the most non-aggressive way possible… it sounds like it has been a Cursor bug since Nov 27.