How to fix bad file descriptor error in VS Code?

There is a bug when the project directory contains files you don't own. For instance, you can have a docker volume that generate root files. -_-
A fix has been done but isn't released yet: http://giters.com/microsoft/vscode/issues/139523

As a workaround you can find offending files with:
find . ! -user myusername

Then you should add them to settings.json:

"files.watcherExclude": {
    "**/.git/objects/**": true,
    "**/.git/subtree-cache/**": true,
    "**/node_modules/*/**": true,
    "**/mongodb/mongo-volume/**": true,
    "**/rabbitmq/data/**": true,
    "**/rabbitmq/logs/**": true
},

You must provide full relative path from project root directory or it won't work.