Correct.
I laugh a little every time I hear some folks immediately push the “Big Bad China is just trying to steal our data” narrative. My immediate reaction is, “Grab some tea and let’s sit down real quick, so I can tell you what some of our companies right here in America and our government do with our data.”
For the rest of the provided history feats, I can't really tell but most of it appeared indeed in established newschannels.
I don't think the fear is that they'll steal code you'll end putting publicly on GitHub, but everything else. I guess there is some fear that it won't just analyze and process what you currently have open, but might scrape your computer for more data and so on.
I personally don't believe ByteDance would be stupid enough to even attempt exfiltrating files from developers machines, which typically are better protected than the average user computer, just trying to see the perspective of others with a more charitable reading :)
The user-based permissions model is an outdated dinosaur from a time when we could trust the applications we run on our systems to act on our behalf. Applications now act on the developer's behalf, often against the user. An application "running as me" should not have access to every resource (file or peripheral) on the device that I have access to. That's a huge blast radius.
Operating Systems really need to start treating developers as adversarial from a security/permissions point of view.
But if it's for some personal project that you're putting on Github, does it matter? If my code is going on Github anyway, it's going to get slurped up regardless. I don't particularly care if it gets processed by Cursor or ByteDance before it gets scraped.