Q:

Prevent VS Code from opening all files in a folder recursively

I am currently using VS Code on a folder mounted through an SSHFS. The folder has subfolders with many jpg and other image files. 
Logging all the files VS Code tries to open reveals it recursively touches all the files (doesn't read the content, just STATs them). This takes very, very long over an SSHfs mount and I can not cancel it without killing the editor (it won't even respond to regular closing). 
During this, no files or directories can be opened (inside VSCode) and will show a loading spinner until VS Code has finally had it's way and checked all the files.
This behaviour only recently emerged, I can't pinpoint if any version beyond the current stable version has this behaviour. 
I am thinking it might be the new searching engine, but I can't find out which part of the editor is doing it. 

A:

It looks like they just posted a fix for your situation:
Slow startup opening a large workspace over the network
you will need vscode v1.32.3 

