[remote] Drag and dropping a \\wsl$\ file to a WSL window results in watcher issues.

• VSCode Version: 1.68.0
• Local OS Version: Windows_NT x64 10.0.19044
• Remote OS Version: WSL Version 2; Ubuntu 20.04.4 LTS, codename "focal"
• Remote Extension/Connection Type: WSL
• Logs: Please comment on which logs I can/should upload

Steps to Reproduce:

1. Open a folder in WSL from the \\wsl$ filesystem.
2. Switch git branches: either git checkout <branchname> or use the VSCode branch manager to switch branches.
3. Editor does not visually update file contents.
4. Close file editor, open the same file (from sidebar or Windows Explorer) - now the contents are updated.

I disabled my extensions one-by-one and identified that the "Python" extension was causing the issue.

Still, I experienced some strange behavior when I tried to re-install the Python extension:

• Got the alert Cannot change enablement of Python extension because of its extension kind
• Closed and re-started VSCode, still got this issue
• Installed "Pre-Release" of the extension in question, then I was able to "Enable in WSL: Ubuntu"
• Now it all seems to be working.

Possibly related issue:

I often find that my Pylance language server is not functioning in WSL, and my Python-driven formatter (yapf) often does not work. When this happens, I sometimes switch language server to Jedi and formatter to "black", which tend to work; alternatively, closing VSCode and restarting sometimes makes it work; alternatively, doing a "Reopen folder in Windows" and then "Reopen folder in WSL" round-trip sometimes makes it work (sometimes after multiple round-trips). "Restart language server" tends not to work.

I would like developing in WSL to work all of the time, so I will post this issue even though it is not well-defined. I already posted on:

• #5000
• #5712
  • @aeschli suggested I open a new issue.

Does this issue occur when you try this locally?: N/A
Does this issue occur when you try this locally and all extensions are disabled?: No