I'm writing this on a Friday night but I've been struggling with this issue since Monday. This is for anyone who is in the same situation as me so as not to waste time as I did searching through Google and a long Github thread for a solution.
I recently changed my computer so I had to reinstall all my apps from scratch and while opening VS code for the first time I came across this annoying bug of Google Chrome not refreshing even after setting up a live server and changing my settings to auto-save after 500ms. I had to go through the Repository for several days and I stumbled upon this thread, turns out a lot of other have been having the same problem for over a year. After scouring for what seemed like an eternity, I came across this 👇
and this pretty much sums the whole solution to the problem. But just to elaborate a little, you shouldn't use a period when naming your folder. I don't know why exactly but that is the case and make sure to avoid it. Of course, not everybody has the exact same problem so it might not work for people having a slightly different issue but it worked for me and you also should at least cross-check your work if you're having a similar issue.
I know this is all over the place but I just thought I should immediately put it out so as to help other people avoid making the same mistake and wasting an infinite amount of time as I did.