Your link doesn't suggest a violation of TOS, but rather a policy shift disallowing their major competitors to use their model for any use.
That thread you linked suggested they were using it with cursor as part of their development process, not for distilling.
>"Hi team, I believe many of you have already discovered that anthropic models are not responding on cursor. According to cursor this is a new policy anthropic is enforcing for all its major competitors."
Again neither of those links indicated usage that violate TOS beyond being a major competitor.
They indiacte their development staff are using it, and they access it via API, then then go on to say all the nefarious things they "could" be doing, stopping before stating they actually are.
Specifically the TOS violation was:
>customers are barred from using the service to “build a competing product or service"
So if you are building a competitive product, that alone is a TOS violation from their perspective.
Which is fine and their prerogative, but we shouldn't cast a dark cloud suggesting other violations were happening without stated evidence.
OpenAI publicly stated they can't "trust that xAI will use it within terms" not even that they've violated, not that there has been a violation from the Cursor team.
That thread you linked suggested they were using it with cursor as part of their development process, not for distilling.
>"Hi team, I believe many of you have already discovered that anthropic models are not responding on cursor. According to cursor this is a new policy anthropic is enforcing for all its major competitors."