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Correct answer: C. Cursor installs from the Open VSX registry, so a Marketplace-only extension has no listing there.
Explanation
The principle — Cursor is a fork of VS Code, but it does not draw on the same extension catalogue. It installs from the Open VSX registry, which overlaps heavily with the VS Code Marketplace without matching it.
Why the key is correct — An extension published only to the Marketplace has no Open VSX listing, so searching for it inside Cursor returns nothing. The install is healthy; the catalogue behind the panel is simply different.
Why the others are wrong — The import carries extensions across as well as themes and settings, so it is not limited to appearance. Search results are not withheld while a local index builds. And nothing strips competing assistants out of the listing.
Remember this — A missing extension usually means it was never published to Open VSX, so look for an alternative.
Sources — Cursor's Migrate from VS Code help page.
Sources
“Cursor uses the Open VSX extension registry, not the VS Code Marketplace.”
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