I created an .ino file in VSCode using this Arduino extension. Everything seems to work fine, linked the extension to the folder where I have Arduino IDE 1.8.5 extracted. Intellisense is working fine. I can switch boards and open serial monitor.
The problem comes when I try to verify or upload the sketch to the board, then a popup message tells:
Cannot find the sketch file.
Here's a screenshot from the VSCode window when the error appears:

@EnforcerZhukov Wthat is the content in the arduino.json file?
Where is that file?
Where is the fukking arduino.json?! (MAC OS 10.12)
@starock , the arduino.json file is located in the exact project folder within .vscode. You can use ls -al to see it.
config the sketch value in arduino.json, for example : "sketch": "GetStarted.ino",

@EnforcerZhukov have you got this issue solved?
Hi again, thanks for the help.
Tried with a random sketch specifying the "sketch" in the arduino.json file and seems to work fine now!

@EnforcerZhukov great! May I close this issue if it has been resolved?
Please create a new issue if you still have this problem.
For people still getting this issue: I needed to create a workspace for the .ino file I had. VSCode needs to create a hidden directory with the aforementioned file in it. Not doing so results in the above error. I created a vscode workspace along the .ino file I had and saved the workspace. Setup everything in VSCode in regards to arduino settings (port, board, etc) and everything worked as expected trying to upload to my nodeMCUs :)
Just trying to help people coming from google like I did.
Most helpful comment
For people still getting this issue: I needed to create a workspace for the .ino file I had. VSCode needs to create a hidden directory with the aforementioned file in it. Not doing so results in the above error. I created a vscode workspace along the .ino file I had and saved the workspace. Setup everything in VSCode in regards to arduino settings (port, board, etc) and everything worked as expected trying to upload to my nodeMCUs :)
Just trying to help people coming from google like I did.