VSCode won't work with filewatchers

I am running this command to watch .scss files node-sass-chokidar ./scss -o ./build --watch

If I edit the file in notepad++ everything works fine and file compiles.

If I edit it in VSCode then after I save it gives this error:

{
  "status": 3,
  "message": "File to read not found or unreadable: E:/Clients/conversions/css/scss/mobile.scss",
  "formatted": "Internal Error: File to read not found or unreadable: E:/Clients/conversions/css/scss/mobile.scss\n"
}

I found some threads saying this is caused by atomic save but VSCode developer says in github thread that VSCode does not use atomic save. But then in another thread he says it renames files so I guess this could be issue.

Does anyone have any idea how I can fix this and just make it save normally?