Hi-load with large directory structures in opened folder

[jensens]

Issue Type: Bug

After starting Code I had a load of 20 and more on my Thinkpad T490s. It blocked the system.
This used to work before. Load was always high, but not system-blocking. So, I guess it's after an update. Sorry, I did not track my Code updates, so I can not tell exactly.

I found "/usr/share/code/code /usr/share/code/resources/app/out/bootstrap-fork --type=watcherService" guilty using just "top".

Since the watcher seems to be the problem and after running "code --status" I got a hint to have lots of ".blob" files in a customer database copy structure contained in the opened folder. Exactly 279459 files in a treeish folder structure of 342295 folders and sub-folders with ~120GB of data looking like so (folder "blobstorage"):

├── 0x00
│   └── 0x00
│       └── 0x00
│           └── 0x00
│               ├── 0x00
│               │   ├── 0x00
│               │   │   ├── 0x50
│               │   │   │   ├── 0x51
│               │   │   │   │   └── 0x03b712b0e3b20511.blob
│               │   │   │   ├── 0x71
│               │   │   │   │   └── 0x03b712b31e08fb55.blob
│               │   │   │   ├── 0x83
│               │   │   │   │   └── 0x03b712b7a605c966.blob
│               │   │   │   └── 0x94
│               │   │   │       └── 0x03b712d3a4152533.blob
│               │   │   ├── 0x51
│               │   │   │   ├── 0xd7
│               │   │   │   │   └── 0x03b712d3c4dc2f00.blob
│               │   │   │   └── 0xdb
│               │   │   │       └── 0x03b712d4ee6a9000.blob
...

After excluding **/blobstorage/** in "Exclude" and "Watcher Exclude" settings the problem was solved.

The problem occurs with all Extensions disabled too, with a slightly lower load on the system, but still blocking.

Is this a limitation of code to be aware of or a bug?

see also my initial Tweet https://twitter.com/yenzenz/status/1375133200155082754

VS Code version: Code 1.54.3 (2b9aebd, 2021-03-15T10:55:24.277Z)
OS version: Linux x64 5.8.0-45-generic

System Info

Item	Value
CPUs	Intel(R) Core(TM) i7-8565U CPU @ 1.80GHz (8 x 1800)
GPU Status	2d_canvas: enabled gpu_compositing: enabled multiple_raster_threads: enabled_on oop_rasterization: disabled_off opengl: enabled_on protected_video_decode: unavailable_off rasterization: disabled_software skia_renderer: enabled_on video_decode: disabled_software vulkan: disabled_off webgl: enabled webgl2: enabled
Load (avg)	3, 2, 1
Memory (System)	15.33GB (2.71GB free)
Process Argv	--no-sandbox --crash-reporter-id 917dda3a-b49f-4fd8-aa90-ff788ec4d3af
Screen Reader	no
VM	0%
DESKTOP_SESSION	regolith
XDG_CURRENT_DESKTOP	Regolith:GNOME-Flashback:GNOME
XDG_SESSION_DESKTOP	regolith
XDG_SESSION_TYPE	x11

Extensions: none

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[vscodebot]

(Experimental duplicate detection)
Thanks for submitting this issue. Please also check if it is already covered by an existing one, like:

• Monolithic structure, multiple project settings (#32693)

[bpasero]

/duplicate #3998