I can see that the "Arduino Mbed OS Nano Boards" platform installation was successful so I do believe this is benign and you should be able to safely ignore the "Unable to watch for the changes in this large workspace." warning notification.
Are you experiencing any problems with the functionality of Arduino IDE?
Do you encounter this notification regularly when using Arduino IDE, or did it only occur the one time?
Was the sketch you had open in Arduino IDE at the time the error occurred saved, or is it only an unsaved new sketch?
I had this message a few months ago, and at the time, I was told it was a known spurious message. I'm not surprised to see it again, and can only say that I was assured it was unimportant.
I have not seen this message at all since updating to version 2 of the Arduino IDE, but I haven't installed or updated many libraries.
Hope this helps or reassures you.
I get this very occasionally but I'm sure it's my own doing. Had one last week for the first time in a long time; reasonably sure it happened when I was cleaning out the stuff that the IDE leaves behind in the temporary directory, just deleted one file too many that was in use by the IDE at that time
I got that message quite a lot a while ago.
I think it was caused because I opened like 4 sketches at the same time.
I don't think it affects anything though.