Do not watch parent folders recursively if not needed #24933
Merged
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Fixes microsoft/vscode#51139 further to avoid the unnecessary directory watch triggers
In case of AMD resolution, say we are trying to resolve module "fs" we would go looking for file fs.ts/fs.tsx/etc in each of the ancestor folder. At this point we use to create directory watch in the ancestor folder but to watch it recursively. This lead to the watch being triggered frequently. This fixes that issue since ancestor folders will be watched only for something directly in it. (eg. ancestor/fs.ts) In rest of the scenarios we will watch subdirectory of ancestor folder as shown in #24471