We are using chokidar for file watching. Chokidar is known for performing bad over large folders (see paulmillr/chokidar#410). To investigate:

• can we consume a newer version of chokidar with the scalability issue fixed
• can we change our watching strategy to only watch what we need instead of always watching root
• can we switch to another watching library that is more efficient

Workaround:
Find the large folders in your workspace and add them under the files.watcherExclude setting