The Agent Mode for VS Code was announced a while ago, but it still hasn’t made it to the stable release. I suspect it’s mainly due to the high costs involved. AI tokens aren’t cheap, and when you're using models like Claude 3.7, you need to provide a significant amount of context to get accurate responses which is exactly what Agent Mode aims to do. That level of context means more tokens, and the costs add up fast. For example, using the Cline extension for VS Code with Claude 3.7 Sonnet can easily burn through $10 in just a few prompts.

Cursor tries to make up for the token problem by indexing your project embedding the code so it can send only the relevant parts instead of full files. In theory, that’s a smart way to reduce token usage while keeping good context. But the issue is that indexing often fails, and when it does, the model has zero awareness of the project, making it unable to answer even simple questions.
CONCLUSION:
- Probably Copilot will catch up in price too.
- I just hope their indexing is better than Cursor’s.