I was looking for a feature that automatically copies selected text to the clipboard as soon as you highlight it with your mouse, without needing to press Ctrl+C (or Cmd+C on Mac). It is actually the default behavior on iTerm like below:

While Cursor or VS Code, like most text editors, doesn't have this exact "auto-copy on drag selection" functionality built-in natively, you can achieve it by leveraging its compatibility with VS Code extensions.

Here's how to set it up: Enable Automatic Copy in Cursor
Settings → VS Code Settings → Type “terminal.integrated.copy” → Check it out