Well, that's not very positive... but I can relate. VS Code lost some work of mine on the first day I tried it, so I decided not to continue using it. It wasn't super important so I wasn't angry, but it was a good chunk of code I had just spent probably 45 minutes writing and debugging.

You could argue it was my fault because I didn't stage and commit the new file, but there's no reason to close a buffer just because the backing file is gone. Close it if I say so, otherwise keep it open with the last-seen contents of the file. This has always worked fine in Sublime.

Please always err on the side of not losing data, even if it means keeping around "annoying" extra tabs.