The Cursor-specific trap: the speech extension will not install
Search the Extensions view in Cursor for VS Code Speech and you will not find Microsoft's version of it. Cursor installs extensions from the Open VSX registry rather than the Microsoft Marketplace, and Microsoft's own extensions are not published there. Cursor's documentation covers this and points at first-party replacements for the ones it can ship itself. Dictation is not one of the replacements, so on Cursor you use a system-level tool, not an extension.
If a search result offers a lookalike "speech" extension in Cursor, check the publisher before installing. It is not Microsoft's, and it does not carry Microsoft's shortcut or behaviour.
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