• OS Version: macOS

Steps to Reproduce:

1. start code --verbose to see logs for file watcher
2. ensure you have the default files.watcherExclude setting that ignores node_modules
3. run npm install

=> 🐛 there are tons of file events showing up for node_modules/.staging

Fix is to tell anymatch in chokidar to set the { dot: true } option such as ** matches on any file/folder with leading ".".