This is the error:

Unhandled exception. System.IO.IOException: The configured user limit (128) on the number of inotify instances has been reached, or the per-process limit on the number of open file descriptors has been reached.
   at System.IO.FileSystemWatcher.StartRaisingEvents()
   at System.IO.FileSystemWatcher.StartRaisingEventsIfNotDisposed()
   at System.IO.FileSystemWatcher.set_EnableRaisingEvents(Boolean value)
   at Microsoft.Extensions.FileProviders.Physical.PhysicalFilesWatcher.TryEnableFileSystemWatcher()
   at Microsoft.Extensions.FileProviders.Physical.PhysicalFilesWatcher.CreateFileChangeToken(String filter)
   at Microsoft.Extensions.FileProviders.PhysicalFileProvider.Watch(String filter)
   at Microsoft.Extensions.Configuration.FileConfigurationProvider.<.ctor>b__1_0()
   at Microsoft.Extensions.Primitives.ChangeToken.OnChange(Func`1 changeTokenProducer, Action changeTokenConsumer)
   at Microsoft.Extensions.Configuration.FileConfigurationProvider..ctor(FileConfigurationSource source)
   at Microsoft.Extensions.Configuration.Json.JsonConfigurationSource.Build(IConfigurationBuilder builder)
   at Microsoft.Extensions.Configuration.ConfigurationBuilder.Build()
   at Microsoft.AspNetCore.Hosting.WebHostBuilder.BuildCommonServices(AggregateException& hostingStartupErrors)
   at Microsoft.AspNetCore.Hosting.WebHostBuilder.Build()

This seems to only happen on linux systems, and in the case of the kubernetes environment, the best fix is to switch over the API to not use the default user in the Dockerfile. See the end of the article below:

.NET Core: The configured user limit (128) on the number of inotify instances has been reached.