Most Helpful Guy
Option 1: It means you're good, but not good enough. In other words, they wouldn't go for you.
Option 2: It means you are actually cute. If you're petite and with a nice face, that's gonna make you look cute by default, no matter how proportionate your body is.
I wouldn't be concerned about it if I were you. I know, it's like they're putting you down, I've always been called "cute" as well and I hate it, but there's always someone who is into cute girls. And in a long and serious perspective looks don't really matter.
Most Helpful Girl
Just take the compliment
Plenty of guys love cute girls