1)Open a new terminal.

2)cat /proc/sys/fs/inotify/max_user_watches (might be a number 8k+)

3)sudo gedit /etc/sysctl.conf

4)go all the way down and add a new line with: fs.inotify.max_user_watches=524288 (make sure you DONT have a # in front of the command)

5)save the file and quit.

6)type sudo sysctl -p

7)type again: cat /proc/sys/fs/inotify/max_user_watches (should be 500k+ now)

Reference link: Visual Studio Code unable to watch(inotify_watches) for file changes in this large workspace weird