It's possible but I think this is a bit of a non-issue for cursor. Microsoft extensions are pretty good but are not irreplacable, and in the meantime cursor has grown astronomically fast and has grabbed a ton of "AI Coding" mindshare. I think the gamble has already paid off for them: if they have to play nice with licensing and develop their own solutions to replace MS proprietary extensions, they now have the scale to do that. GH Copilot was first in the game but now has the reputation of the poor man's cursor.

I don't know anyone that even knows Cursor exists, outside HN readership bubble.