Undo (Cmd+Z) behavior is different from VSCode

Hello, in VSCode undo (CMD+Z) and redo (CMD+SHIFT+Z) behavior is way smoother. It changes multiple words/actions at a time. In Cursor it goes one character at a time. I am not even talking about CMD+K changes (which is not ideal but usually not the problem).

So my question is, how can I change this behavior to use the (default) VSCode undo?

there is an issue here: undo `cmd+z` is weird · Issue #1781 · getcursor/cursor · GitHub, has solution in comments