With the release of version 1.0 today, the Draw.io integration extension for VS Code got many new features.
One of those features is the advanced support for liveshare. Besides content synchronization, cursors and selections of participants are synchronized - this is crucial for collaboration.
A detailed list of all changes can be found in the changelog (https://github.com/hediet/vscode-drawio/blob/14209ad462028cb...).