The error you posted is coming from LiveShare extension. You should use the Report a Bug feature in VS to report the issue directly to the VS team. Capture the issue using the recording tool if possible and that will send them all the data they need to hopefully identify the issue.
It is possible for the output window and error list to be out of sync. The Error List window is using a combination of sources including the background compilation to report issues and some of these are tied to the windows that are open. The Output window only shows errors when you compile so assuming your initial screenshot indicates a compiler error but the source code doesn't have one would indicate a disconnect.
However in your error screenshot the compiler seems right to me but you didn't post the entire error message so it is hard to tell. The compiler is complaining about line 851 which is where you call FontFile_Read with no parameters. The method itself requires a single parameter so the function call is bad. Since I cannot see the entire compiler error it is hard to tell whether the compiler is reporting the right error or not though.
In many cases where I see disconnected behavior in VS I find that blowing away the .vs
folder in the solution directory and restarting VS solves some problems. VS caches data in this folder and it can get corrupted between updates of VS.
Irrelvant, you should use the Report a Bug feature in VS to report issues with VS. They are the correct people to help diagnose and fix the issues you're seeing.