A few things to point out:

• Microsoft created this extension and pays money to develop it
• Despite that, they give it to programmers for free. It is still free of charge.
• They explicitly said that using it outside of their products is forbidden (according to article: at least 5 years ago), they just didn’t enforce it
• Someone (here: Cursor developers), despite that, used it in their products and started to make money from it

What exactly are you mad at? When will programming community finally understand that Microsoft is not a non-profit company and its primary purpose is to make money?

Can anyone ELI5 why it’s bad? Apart from contributior being Microsoft