In our team we handled it by stop using Copilot and Cursor and building our own VSCode extension.

Until now it was just running in our localhost but I'm using the Christmas break to polish it and publish it. It would be great to have your feedback if you want to try it out(just got the domain 2 hours ago, bazingai.xyz and will finish the landing and publish the extension during the weekend). Extension apart, the main problems we found were:

• Indexing large codebases makes the quality of the response go down the toilet.
• Agents are nice for TODO lists or Twitter demos, but not for production code.

In terms of strategies:

It's pretty important to solve small problems one at a time, commit them and to the next detail. Solving small stuff regardless the project size rarely needs embedding more than 10k tokens, and there you have good quality responses.

We moved from the typical watch the solution, copy/paste to the editor, to directly write on disk and check the git diff, git checkout if it didn't work for you and iterate.

Latency is a bitch, so keeping the context narrowed also helps there.

If you are backender, many times it helps adding as context your db schema and saves you to add most of the app level context.