Microsoft blocks extension for VS code alternatives

Microsoft has caused resentment in the developer scene. Because after an update of the C/C ++-expansion for Microsoft’s code editor Visual Studio Code (VS Code), this no longer works in alternative development environments such as VS Codium or Cursor.

Targeted disability?

The change in question came with version 1.24.5 of the expansion on April 3, 2025. Anyone who now tries to install the plugin outside of Microsoft products will receive an error message that explicitly limits the use to Visual Studio, VS Code or other Microsoft services. Although these license conditions have been in effect since 2020, Microsoft has only now technically enforced them.

The measure mainly affects projects such as VS Codium, a source-open version of VS Code, as well as Cursor, a VS code-based AI code assistant. Cursor in particular is now forced to switch to other plugins. Michael Truell, head of the cursor manufacturer Anysphere, announced that it would integrate source-open alternatives into the product in order not to make users dependent on Microsoft’s closed extensions.

Critics accuse Microsoft to hinder competing products with this step – even if it is legitimate offshoots of their own platform. In developer circles it is assumed that the restrictions are related to the introduction of “Agent Mode”-a new AI function within Microsoft’s Copilot-Suite.

FTC should clarify

Some developers do not want to put up with this matter. An anonymous developer confirmed to The Register that he asked the US trade supervision FTC to investigate possible practices in violation. So far, Microsoft has not commented on the allegations. In the meantime, developers are increasingly looking for really free and open alternatives – and the discussion about digital dependencies is gaining drive again.