Popularity
Blue line is node-sass, orange is sass popularity.

The sass readme explains some of the differences:
- Dart Sass, from which this package is compiled, can be used either as a stand-alone executable or as a Dart library. Running Dart Sass on the Dart VM is substantially faster than running the pure JavaScript version, so this may be appropriate for performance-sensitive applications. The Dart API is also (currently) more user-friendly than the JavaScript API. See the Dart Sass README for details on how to use it.
- Node Sass, which is a wrapper around LibSass, the C++ implementation of Sass. Node Sass supports the same API as this package and is also faster (although it's usually a little slower than Dart Sass). However, it requires a native library which may be difficult to install, and it's generally slower to add features and fix bugs.
Performance
There are performance differences which are covered in answer, which compares the differences compiling Bootstrap 4:

In this particular case, two seconds is not a big deal; but consider Dart-Sass(JS) is nine times slower than Dart-Sass(Dart VM) and three times slower than node-sass.
This article has more details about this benchmark.
Maintenance
node-sass is considered deprecated, but you can see frequent updates are happening for both packages.
Why @use and @forward doesn't work on node-sass
Because node-sass uses LibSass which is implemented in C and does not receive updates as frequently as the Dart implementation.
» npm install sass
css - Can't install node-sass using npm - Stack Overflow
Slow performance when using npm package `sass`
Should I use sass or node-sass package from the npm repository?
How can I tell which version of Sass is running with node-sass?
Videos
» npm install sass-loader
» npm install npm-sass
» npm install sass-embedded
I want to install a sass compiler as I'm learning the language. The tutorial instructs from the official ruby version, but I don't want to needlessly install ruby on my system. Now, I already have node and npm, and there are two packages on npm repo:
https://www.npmjs.com/package/sass
https://www.npmjs.com/package/node-sass
Can someone confirm which is the canonical and should be ideally used?