Do we really need VSCode watcher? What all does it do? How to stop this completely?

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So I have been using VSCode and I love the functionality built. With sublime I had to do too much manual effort. But vscode is CPU intensive and mainly because of file watcher, I am trying to understand what all does this file watcher do? In a react code, we already have hot-reload, do we really need this? And how to stop this all together.

I tried to add * pattern in vscode setting files.watcherExclude to stop filewatcher but I have no clue whether it's actually working or not.

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