Define losing? My company pays for Copilot but not for Cursor, and it's not at all clear to me that we're the exception rather than the norm. What numbers and data are you working with?
That's not actually how unseating an incumbent works. The incumbent can adapt to the threat for quite a while if they act on it, they just have to not be Blockbuster. Copilot is showing every sign of making up ground feature-wise, which is bad news for the runners up.
Incumbent advantage of being in VS Code already? Thing is, Cursor is basically just VS Code, there's hardly any barrier to switching, so it's quite a weak advantage.