If you're a solo developer or part of a small team focusing on seamless coding workflows and collaboration, Visual Studio Code is the way to go. It offers a vast extension ecosystem, integrated features for Git and debugging, and is free to use. This makes it well-suited for those who frequently collaborate with others or need a versatile tool for various projects.
On the other hand, if you are an AI-first developer who heavily relies on AI assistance for coding tasks, Cursor is your best bet. Its advanced AI completion and multi-file editing capabilities are designed to significantly enhance productivity in more complex coding scenarios. However, be mindful of the potential costs associated with intensive AI use and that it's a closed-source tool, which may not align with your needs if you prefer open-source solutions.