Getting error ENOSPC despite having a small workspace

I'm getting the message https://code.visualstudio.com/docs/setup/linux#_visual-studio-code-is-unable-to-watch-for-file-changes-in-this-large-workspace-error-enospc despite having a pretty small workspace:
```
find . -name node_modules -prune -o -print | wc -l
319
```

My `fs.inotify.max_user_watches` is the default (8k), my system is
```
Cinnamon 4.0.8
no daily builds
Distributor ID: LinuxMint
Description: Linux Mint 19.1 Tessa
Release: 19.1
Codename: tessa
i7-9700K build-in video, no driver installed yet

code --version
1.35.1
c7d83e57cd18f18026a8162d042843bda1bcf21f
x64
```