My file structure is:
dist css style.css index.html js bundle.js src css style.css index.html js main.js node_modules webpack.con
I increased the max number of file changes that can be watched and it worked for me. I guess the issue for me was too many files.
echo fs.inotify.max_user_watches=1999999 | sudo tee -a /etc/sysctl.conf && sudo sysctl -p
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