diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index a1480723b8b93..d8ee13561b397 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -933,7 +933,16 @@ function createWatchFactoryHostUsingWatchEvents(service: ProjectService, canUseW
             recursive ? watchedDirectoriesRecursive : watchedDirectories,
             path,
             callback,
-            id => ({ eventName: CreateDirectoryWatcherEvent, data: { id, path, recursive: !!recursive } }),
+            id => ({
+                eventName: CreateDirectoryWatcherEvent,
+                data: {
+                    id,
+                    path,
+                    recursive: !!recursive,
+                    // Special case node_modules as we watch it for changes to closed script infos as well
+                    ignoreUpdate: !path.endsWith("/node_modules") ? true : undefined,
+                },
+            }),
         );
     }
     function getOrCreateFileWatcher<T>(
@@ -963,37 +972,32 @@ function createWatchFactoryHostUsingWatchEvents(service: ProjectService, canUseW
             },
         };
     }
-    function onWatchChange({ id, path, eventType }: protocol.WatchChangeRequestArgs) {
-        // console.log(`typescript-vscode-watcher:: Invoke:: ${id}:: ${path}:: ${eventType}`);
-        onFileWatcherCallback(id, path, eventType);
-        onDirectoryWatcherCallback(watchedDirectories, id, path, eventType);
-        onDirectoryWatcherCallback(watchedDirectoriesRecursive, id, path, eventType);
+    function onWatchChange(args: protocol.WatchChangeRequestArgs | readonly protocol.WatchChangeRequestArgs[]) {
+        if (isArray(args)) args.forEach(onWatchChangeRequestArgs);
+        else onWatchChangeRequestArgs(args);
     }
 
-    function onFileWatcherCallback(
-        id: number,
-        eventPath: string,
-        eventType: "create" | "delete" | "update",
-    ) {
-        watchedFiles.idToCallbacks.get(id)?.forEach(callback => {
-            const eventKind = eventType === "create" ?
-                FileWatcherEventKind.Created :
-                eventType === "delete" ?
-                FileWatcherEventKind.Deleted :
-                FileWatcherEventKind.Changed;
-            callback(eventPath, eventKind);
-        });
+    function onWatchChangeRequestArgs({ id, created, deleted, updated }: protocol.WatchChangeRequestArgs) {
+        onWatchEventType(id, created, FileWatcherEventKind.Created);
+        onWatchEventType(id, deleted, FileWatcherEventKind.Deleted);
+        onWatchEventType(id, updated, FileWatcherEventKind.Changed);
+    }
+
+    function onWatchEventType(id: number, paths: readonly string[] | undefined, eventKind: FileWatcherEventKind) {
+        if (!paths?.length) return;
+        forEachCallback(watchedFiles, id, paths, (callback, eventPath) => callback(eventPath, eventKind));
+        forEachCallback(watchedDirectories, id, paths, (callback, eventPath) => callback(eventPath));
+        forEachCallback(watchedDirectoriesRecursive, id, paths, (callback, eventPath) => callback(eventPath));
     }
 
-    function onDirectoryWatcherCallback(
-        { idToCallbacks }: HostWatcherMap<DirectoryWatcherCallback>,
+    function forEachCallback<T>(
+        hostWatcherMap: HostWatcherMap<T>,
         id: number,
-        eventPath: string,
-        eventType: "create" | "delete" | "update",
+        eventPaths: readonly string[],
+        cb: (callback: T, eventPath: string) => void,
     ) {
-        if (eventType === "update") return;
-        idToCallbacks.get(id)?.forEach(callback => {
-            callback(eventPath);
+        hostWatcherMap.idToCallbacks.get(id)?.forEach(callback => {
+            eventPaths.forEach(eventPath => cb(callback, eventPath));
         });
     }
 }
diff --git a/src/server/protocol.ts b/src/server/protocol.ts
index e61c2393f1d14..25910e021990a 100644
--- a/src/server/protocol.ts
+++ b/src/server/protocol.ts
@@ -1960,13 +1960,13 @@ export interface CloseRequest extends FileRequest {
 
 export interface WatchChangeRequest extends Request {
     command: CommandTypes.WatchChange;
-    arguments: WatchChangeRequestArgs;
+    arguments: WatchChangeRequestArgs | readonly WatchChangeRequestArgs[];
 }
-
 export interface WatchChangeRequestArgs {
     id: number;
-    path: string;
-    eventType: "create" | "delete" | "update";
+    created?: string[];
+    deleted?: string[];
+    updated?: string[];
 }
 
 /**
@@ -3052,6 +3052,7 @@ export interface CreateDirectoryWatcherEventBody {
     readonly id: number;
     readonly path: string;
     readonly recursive: boolean;
+    readonly ignoreUpdate?: boolean;
 }
 
 export type CloseFileWatcherEventName = "closeFileWatcher";
diff --git a/src/testRunner/unittests/tsserver/events/watchEvents.ts b/src/testRunner/unittests/tsserver/events/watchEvents.ts
index 0a6028dcda33d..88c6450a7ae52 100644
--- a/src/testRunner/unittests/tsserver/events/watchEvents.ts
+++ b/src/testRunner/unittests/tsserver/events/watchEvents.ts
@@ -4,6 +4,7 @@ import {
 } from "../../../../harness/tsserverLogger";
 import {
     createWatchUtils,
+    Watches,
     WatchUtils,
 } from "../../../../harness/watchUtils";
 import * as ts from "../../../_namespaces/ts";
@@ -60,11 +61,11 @@ describe("unittests:: tsserver:: events:: watchEvents", () => {
         }
 
         function watchDirectory(data: ts.server.protocol.CreateDirectoryWatcherEventBody) {
-            logger.log(`Custom watchDirectory: ${data.id}: ${data.path} ${data.recursive}`);
+            logger.log(`Custom watchDirectory: ${data.id}: ${data.path} ${data.recursive} ${data.ignoreUpdate}`);
             ts.Debug.assert(!idToClose.has(data.id));
             const result = host.factoryData.watchUtils.fsWatch(data.path, data.recursive, data);
             idToClose.set(data.id, () => {
-                logger.log(`Custom watchDirectory:: Close:: ${data.id}: ${data.path} ${data.recursive}`);
+                logger.log(`Custom watchDirectory:: Close:: ${data.id}: ${data.path} ${data.recursive} ${data.ignoreUpdate}`);
                 result.close();
             });
         }
@@ -89,37 +90,132 @@ describe("unittests:: tsserver:: events:: watchEvents", () => {
         }
     }
 
-    function updateFileOnHost(session: TestSession, file: string, log: string) {
+    function updateFileOnHost(session: TestSession, file: string, log: string, content?: string) {
         // Change b.ts
-        session.logger.log(log);
-        session.host.writeFile(file, session.host.readFile("/user/username/projects/myproject/a.ts")!);
+        session.logger.log(`${log}: ${file}`);
+        if (content) session.host.appendFile(file, content);
+        else session.host.writeFile(file, session.host.readFile("/user/username/projects/myproject/a.ts")!);
         session.host.runQueuedTimeoutCallbacks();
     }
 
+    function collectWatchChanges<T extends ts.server.protocol.CreateFileWatcherEventBody | ts.server.protocol.CreateDirectoryWatcherEventBody>(
+        session: TestSession,
+        watches: Watches<T>,
+        path: string,
+        eventPath: string,
+        eventType: "created" | "deleted" | "updated",
+        ignoreUpdate?: (data: T) => boolean,
+    ) {
+        session.logger.log(`Custom watch:: ${path} ${eventPath} ${eventType}`);
+        let result: ts.server.protocol.WatchChangeRequestArgs[] | undefined;
+        watches.forEach(
+            path,
+            data => {
+                if (ignoreUpdate?.(data)) return;
+                switch (eventType) {
+                    case "created":
+                        (result ??= []).push({ id: data.id, created: [eventPath] });
+                        break;
+                    case "deleted":
+                        (result ??= []).push({ id: data.id, deleted: [eventPath] });
+                        break;
+                    case "updated":
+                        (result ??= []).push({ id: data.id, updated: [eventPath] });
+                        break;
+                    default:
+                        ts.Debug.assertNever(eventType);
+                }
+            },
+        );
+        return result;
+    }
+
+    function collectDirectoryWatcherChanges(
+        session: TestSession,
+        dir: string,
+        eventPath: string,
+        eventType: "created" | "deleted" | "updated",
+    ) {
+        return collectWatchChanges(
+            session,
+            (session.logger.host as TestServerHostWithCustomWatch).factoryData.watchUtils.fsWatchesRecursive,
+            dir,
+            eventPath,
+            eventType,
+            data => !!data.ignoreUpdate && eventType === "updated",
+        );
+    }
+
+    function collectFileWatcherChanges(
+        session: TestSession,
+        file: string,
+        eventType: "created" | "deleted" | "updated",
+    ) {
+        return collectWatchChanges(
+            session,
+            (session.logger.host as TestServerHostWithCustomWatch).factoryData.watchUtils.pollingWatches,
+            file,
+            file,
+            eventType,
+        );
+    }
+
+    function invokeWatchChange(
+        session: TestSession,
+        ...args: (ts.server.protocol.WatchChangeRequestArgs[] | undefined)[]
+    ) {
+        let result: Map<number, ts.server.protocol.WatchChangeRequestArgs> | undefined;
+        args.forEach(arg =>
+            arg?.forEach(value => {
+                result ??= new Map();
+                const valueInResult = result.get(value.id);
+                if (!valueInResult) result.set(value.id, value);
+                else {
+                    valueInResult.created = ts.combine(valueInResult.created, value.created);
+                    valueInResult.deleted = ts.combine(valueInResult.deleted, value.deleted);
+                    valueInResult.updated = ts.combine(valueInResult.updated, value.updated);
+                }
+            })
+        );
+        if (result) {
+            session.executeCommandSeq<ts.server.protocol.WatchChangeRequest>({
+                command: ts.server.protocol.CommandTypes.WatchChange,
+                arguments: ts.singleOrMany(ts.arrayFrom(result.values())),
+            });
+        }
+    }
+
     function addFile(session: TestSession, path: string) {
         updateFileOnHost(session, path, "Add file");
-        session.logger.log("Custom watch");
-        (session.logger.host as TestServerHostWithCustomWatch).factoryData.watchUtils.fsWatchesRecursive.forEach(
-            "/user/username/projects/myproject",
-            data =>
-                session.executeCommandSeq<ts.server.protocol.WatchChangeRequest>({
-                    command: ts.server.protocol.CommandTypes.WatchChange,
-                    arguments: { id: data.id, path, eventType: "create" },
-                }),
+        invokeWatchChange(
+            session,
+            collectDirectoryWatcherChanges(session, "/user/username/projects/myproject", path, "created"),
         );
         session.host.runQueuedTimeoutCallbacks();
     }
 
-    function changeFile(session: TestSession, path: string) {
-        updateFileOnHost(session, path, "Change File");
-        session.logger.log("Custom watch");
-        (session.logger.host as TestServerHostWithCustomWatch).factoryData.watchUtils.pollingWatches.forEach(
-            path,
-            data =>
-                session.executeCommandSeq<ts.server.protocol.WatchChangeRequest>({
-                    command: ts.server.protocol.CommandTypes.WatchChange,
-                    arguments: { id: data.id, path, eventType: "update" },
-                }),
+    function changeFile(session: TestSession, path: string, content?: string) {
+        updateFileOnHost(session, path, "Change File", content);
+        invokeWatchChange(
+            session,
+            collectFileWatcherChanges(session, path, "updated"),
+            collectDirectoryWatcherChanges(session, ts.getDirectoryPath(path), path, "updated"),
+        );
+        session.host.runQueuedTimeoutCallbacks();
+    }
+
+    function npmInstall(session: TestSession) {
+        session.logger.log("update with npm install");
+        session.host.appendFile("/user/username/projects/myproject/node_modules/something/index.d.ts", `export const y = 20;`);
+        session.host.runQueuedTimeoutCallbacks();
+        invokeWatchChange(
+            session,
+            collectDirectoryWatcherChanges(
+                session,
+                "/user/username/projects/myproject/node_modules",
+                "/user/username/projects/myproject/node_modules/something/index.d.ts",
+                "updated",
+            ),
         );
         session.host.runQueuedTimeoutCallbacks();
     }
@@ -129,6 +225,8 @@ describe("unittests:: tsserver:: events:: watchEvents", () => {
             "/user/username/projects/myproject/tsconfig.json": "{}",
             "/user/username/projects/myproject/a.ts": `export class a { prop = "hello"; foo() { return this.prop; } }`,
             "/user/username/projects/myproject/b.ts": `export class b { prop = "hello"; foo() { return this.prop; } }`,
+            "/user/username/projects/myproject/m.ts": `import { x } from "something"`,
+            "/user/username/projects/myproject/node_modules/something/index.d.ts": `export const x = 10;`,
             [libFile.path]: libFile.content,
         });
         const logger = createLoggerWithInMemoryLogs(inputHost);
@@ -153,6 +251,26 @@ describe("unittests:: tsserver:: events:: watchEvents", () => {
         // Re watch
         closeFilesForSession(["/user/username/projects/myproject/b.ts"], session);
 
+        // Update c.ts
+        changeFile(session, "/user/username/projects/myproject/c.ts", `export const y = 20;`);
+
+        // Update with npm install
+        npmInstall(session);
+        host.runQueuedTimeoutCallbacks();
+
+        // Add and change multiple files - combine and send multiple requests together
+        updateFileOnHost(session, "/user/username/projects/myproject/d.ts", "Add file");
+        updateFileOnHost(session, "/user/username/projects/myproject/c.ts", "Change File", `export const z = 30;`);
+        updateFileOnHost(session, "/user/username/projects/myproject/e.ts", "Add File");
+        invokeWatchChange(
+            session,
+            collectDirectoryWatcherChanges(session, "/user/username/projects/myproject", "/user/username/projects/myproject/d.ts", "created"),
+            collectFileWatcherChanges(session, "/user/username/projects/myproject/c.ts", "updated"),
+            collectDirectoryWatcherChanges(session, "/user/username/projects/myproject", "/user/username/projects/myproject/c.ts", "updated"),
+            collectDirectoryWatcherChanges(session, "/user/username/projects/myproject", "/user/username/projects/myproject/e.ts", "created"),
+        );
+        session.host.runQueuedTimeoutCallbacks();
+
         baselineTsserverLogs("events/watchEvents", `canUseWatchEvents`, session);
         function handleWatchEvents(event: ts.server.ProjectServiceEvent) {
             switch (event.eventName) {
@@ -192,9 +310,15 @@ describe("unittests:: tsserver:: events:: watchEvents", () => {
         logger.msg = (s, type) => logger.info(`${type}:: ${s}`);
         session.executeCommandSeq<ts.server.protocol.WatchChangeRequest>({
             command: ts.server.protocol.CommandTypes.WatchChange,
-            arguments: { id: 1, path: "/user/username/projects/myproject/b.ts", eventType: "update" },
+            arguments: { id: 1, updated: ["/user/username/projects/myproject/b.ts"] },
         });
 
+        // Update c.ts
+        changeFile(session, "/user/username/projects/myproject/c.ts", `export const y = 20;`);
+
+        // Update with npm install
+        npmInstall(session);
+
         baselineTsserverLogs("events/watchEvents", `canUseWatchEvents without canUseEvents`, session);
     });
 });
diff --git a/tests/baselines/reference/api/typescript.d.ts b/tests/baselines/reference/api/typescript.d.ts
index a131733463740..ae8aa63c572e0 100644
--- a/tests/baselines/reference/api/typescript.d.ts
+++ b/tests/baselines/reference/api/typescript.d.ts
@@ -1510,12 +1510,13 @@ declare namespace ts {
             }
             interface WatchChangeRequest extends Request {
                 command: CommandTypes.WatchChange;
-                arguments: WatchChangeRequestArgs;
+                arguments: WatchChangeRequestArgs | readonly WatchChangeRequestArgs[];
             }
             interface WatchChangeRequestArgs {
                 id: number;
-                path: string;
-                eventType: "create" | "delete" | "update";
+                created?: string[];
+                deleted?: string[];
+                updated?: string[];
             }
             /**
              * Request to obtain the list of files that should be regenerated if target file is recompiled.
@@ -2452,6 +2453,7 @@ declare namespace ts {
                 readonly id: number;
                 readonly path: string;
                 readonly recursive: boolean;
+                readonly ignoreUpdate?: boolean;
             }
             type CloseFileWatcherEventName = "closeFileWatcher";
             interface CloseFileWatcherEvent extends Event {
diff --git a/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents-without-canUseEvents.js b/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents-without-canUseEvents.js
index f4967a6194cc0..103fa17f1687b 100644
--- a/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents-without-canUseEvents.js
+++ b/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents-without-canUseEvents.js
@@ -10,6 +10,12 @@ export class a { prop = "hello"; foo() { return this.prop; } }
 //// [/user/username/projects/myproject/b.ts]
 export class b { prop = "hello"; foo() { return this.prop; } }
 
+//// [/user/username/projects/myproject/m.ts]
+import { x } from "something"
+
+//// [/user/username/projects/myproject/node_modules/something/index.d.ts]
+export const x = 10;
+
 //// [/a/lib/lib.d.ts]
 /// <reference no-default-lib="true"/>
 interface Boolean {}
@@ -40,7 +46,8 @@ Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/project
 Info seq  [hh:mm:ss:mss] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
   "/user/username/projects/myproject/a.ts",
-  "/user/username/projects/myproject/b.ts"
+  "/user/username/projects/myproject/b.ts",
+  "/user/username/projects/myproject/m.ts"
  ],
  "options": {
   "configFilePath": "/user/username/projects/myproject/tsconfig.json"
@@ -49,18 +56,25 @@ Info seq  [hh:mm:ss:mss] Config: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/b.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/m.ts 500 undefined WatchType: Closed Script info
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /a/lib/lib.d.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 1 projectProgramVersion: 0 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (3)
+Info seq  [hh:mm:ss:mss] 	Files (5)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-1 "export class b { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 
 
 	../../../../a/lib/lib.d.ts
@@ -69,10 +83,14 @@ Info seq  [hh:mm:ss:mss] 	Files (3)
 	  Matched by default include pattern '**/*'
 	b.ts
 	  Matched by default include pattern '**/*'
+	node_modules/something/index.d.ts
+	  Imported via "something" from file 'm.ts'
+	m.ts
+	  Matched by default include pattern '**/*'
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (3)
+Info seq  [hh:mm:ss:mss] 	Files (5)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -95,12 +113,16 @@ FsWatches::
   {}
 /user/username/projects/myproject/b.ts: *new*
   {}
+/user/username/projects/myproject/m.ts: *new*
+  {}
 /user/username/projects/myproject/tsconfig.json: *new*
   {}
 
 FsWatchesRecursive::
 /user/username/projects/myproject: *new*
   {}
+/user/username/projects/myproject/node_modules: *new*
+  {}
 
 Projects::
 /user/username/projects/myproject/tsconfig.json (Configured) *new*
@@ -120,8 +142,16 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
-Add file
+Add file: /user/username/projects/myproject/c.ts
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Triggered with /user/username/projects/myproject/c.ts :: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
@@ -148,10 +178,12 @@ Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/project
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-1 "export class b { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 	/user/username/projects/myproject/c.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 
 
@@ -161,6 +193,10 @@ Info seq  [hh:mm:ss:mss] 	Files (4)
 	  Matched by default include pattern '**/*'
 	b.ts
 	  Matched by default include pattern '**/*'
+	node_modules/something/index.d.ts
+	  Imported via "something" from file 'm.ts'
+	m.ts
+	  Matched by default include pattern '**/*'
 	c.ts
 	  Matched by default include pattern '**/*'
 
@@ -168,7 +204,7 @@ Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
 Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -176,7 +212,7 @@ Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts Proje
 Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -197,12 +233,16 @@ FsWatches::
   {}
 /user/username/projects/myproject/c.ts: *new*
   {}
+/user/username/projects/myproject/m.ts:
+  {}
 /user/username/projects/myproject/tsconfig.json:
   {}
 
 FsWatchesRecursive::
 /user/username/projects/myproject:
   {}
+/user/username/projects/myproject/node_modules:
+  {}
 
 Projects::
 /user/username/projects/myproject/tsconfig.json (Configured) *changed*
@@ -227,13 +267,21 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
-Custom watch
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/c.ts created
 Before running Timeout callback:: count: 0
 
 After running Timeout callback:: count: 0
 
-Change File
+Change File: /user/username/projects/myproject/b.ts
 Info seq  [hh:mm:ss:mss] FileWatcher:: Triggered with /user/username/projects/myproject/b.ts 1:: WatchInfo: /user/username/projects/myproject/b.ts 500 undefined WatchType: Closed Script info
 Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
@@ -273,22 +321,32 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 3 projectProgramVersion: 2 structureChanged: false structureIsReused:: Completely Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 	/user/username/projects/myproject/c.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
 Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -296,7 +354,7 @@ Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts Proje
 Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -328,8 +386,17 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
-Custom watch
+Custom watch:: /user/username/projects/myproject/b.ts /user/username/projects/myproject/b.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/b.ts updated
 Before running Timeout callback:: count: 0
 
 After running Timeout callback:: count: 0
@@ -349,7 +416,7 @@ Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /user/username/project
 Info seq  [hh:mm:ss:mss] Search path: /user/username/projects/myproject
 Info seq  [hh:mm:ss:mss] For info: /user/username/projects/myproject/b.ts :: Config file name: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -374,6 +441,8 @@ FsWatches::
   {}
 /user/username/projects/myproject/c.ts:
   {}
+/user/username/projects/myproject/m.ts:
+  {}
 /user/username/projects/myproject/tsconfig.json:
   {}
 
@@ -384,6 +453,8 @@ FsWatches *deleted*::
 FsWatchesRecursive::
 /user/username/projects/myproject:
   {}
+/user/username/projects/myproject/node_modules:
+  {}
 
 ScriptInfos::
 /a/lib/lib.d.ts
@@ -403,6 +474,14 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Before request
 
@@ -417,7 +496,7 @@ Info seq  [hh:mm:ss:mss] request:
     }
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/b.ts 500 undefined WatchType: Closed Script info
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -442,12 +521,16 @@ FsWatches::
   {}
 /user/username/projects/myproject/c.ts:
   {}
+/user/username/projects/myproject/m.ts:
+  {}
 /user/username/projects/myproject/tsconfig.json:
   {}
 
 FsWatchesRecursive::
 /user/username/projects/myproject:
   {}
+/user/username/projects/myproject/node_modules:
+  {}
 
 ScriptInfos::
 /a/lib/lib.d.ts
@@ -467,6 +550,14 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Before request
 
@@ -475,8 +566,9 @@ Info seq  [hh:mm:ss:mss] request:
       "command": "watchChange",
       "arguments": {
         "id": 1,
-        "path": "/user/username/projects/myproject/b.ts",
-        "eventType": "update"
+        "updated": [
+          "/user/username/projects/myproject/b.ts"
+        ]
       },
       "seq": 4,
       "type": "request"
@@ -486,8 +578,9 @@ Info seq  [hh:mm:ss:mss] Err:: Unrecognized JSON command:
       "command": "watchChange",
       "arguments": {
         "id": 1,
-        "path": "/user/username/projects/myproject/b.ts",
-        "eventType": "update"
+        "updated": [
+          "/user/username/projects/myproject/b.ts"
+        ]
       },
       "seq": 4,
       "type": "request"
@@ -509,3 +602,136 @@ Info seq  [hh:mm:ss:mss] response:
       "responseRequired": false
     }
 After request
+
+Change File: /user/username/projects/myproject/c.ts
+Info seq  [hh:mm:ss:mss] FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Before running Timeout callback:: count: 2
+5: /user/username/projects/myproject/tsconfig.json
+6: *ensureProjectForOpenFiles*
+//// [/user/username/projects/myproject/c.ts]
+export class a { prop = "hello"; foo() { return this.prop; } }export const y = 20;
+
+
+Timeout callback:: count: 2
+5: /user/username/projects/myproject/tsconfig.json *new*
+6: *ensureProjectForOpenFiles* *new*
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 4 *changed*
+    projectProgramVersion: 2
+    dirty: true *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-1
+    pendingReloadFromDisk: true *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 4 projectProgramVersion: 2 structureChanged: false structureIsReused:: Completely Elapsed:: *ms
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
+	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
+	/user/username/projects/myproject/c.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }export const y = 20;"
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+After running Timeout callback:: count: 0
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 4
+    projectProgramVersion: 2
+    dirty: false *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-2 *changed*
+    pendingReloadFromDisk: false *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Custom watch:: /user/username/projects/myproject/c.ts /user/username/projects/myproject/c.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/c.ts updated
+Before running Timeout callback:: count: 0
+
+After running Timeout callback:: count: 0
+
+update with npm install
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/node_modules/something/index.d.ts]
+export const x = 10;export const y = 20;
+
+
+After running Timeout callback:: count: 0
+
+Custom watch:: /user/username/projects/myproject/node_modules /user/username/projects/myproject/node_modules/something/index.d.ts updated
+Before running Timeout callback:: count: 0
+
+After running Timeout callback:: count: 0
diff --git a/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents.js b/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents.js
index b7bc70a6bb148..a70a15d02f3e5 100644
--- a/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/events/watchEvents/canUseWatchEvents.js
@@ -10,6 +10,12 @@ export class a { prop = "hello"; foo() { return this.prop; } }
 //// [/user/username/projects/myproject/b.ts]
 export class b { prop = "hello"; foo() { return this.prop; } }
 
+//// [/user/username/projects/myproject/m.ts]
+import { x } from "something"
+
+//// [/user/username/projects/myproject/node_modules/something/index.d.ts]
+export const x = 10;
+
 //// [/a/lib/lib.d.ts]
 /// <reference no-default-lib="true"/>
 interface Boolean {}
@@ -61,7 +67,8 @@ Info seq  [hh:mm:ss:mss] event:
 Info seq  [hh:mm:ss:mss] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
   "/user/username/projects/myproject/a.ts",
-  "/user/username/projects/myproject/b.ts"
+  "/user/username/projects/myproject/b.ts",
+  "/user/username/projects/myproject/m.ts"
  ],
  "options": {
   "configFilePath": "/user/username/projects/myproject/tsconfig.json"
@@ -76,10 +83,11 @@ Info seq  [hh:mm:ss:mss] event:
       "body": {
         "id": 2,
         "path": "/user/username/projects/myproject",
-        "recursive": true
+        "recursive": true,
+        "ignoreUpdate": true
       }
     }
-Custom watchDirectory: 2: /user/username/projects/myproject true
+Custom watchDirectory: 2: /user/username/projects/myproject true true
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/b.ts 500 undefined WatchType: Closed Script info
 Info seq  [hh:mm:ss:mss] event:
@@ -93,7 +101,33 @@ Info seq  [hh:mm:ss:mss] event:
       }
     }
 Custom watchFile: 3: /user/username/projects/myproject/b.ts
+Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/m.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::createFileWatcher",
+      "body": {
+        "id": 4,
+        "path": "/user/username/projects/myproject/m.ts"
+      }
+    }
+Custom watchFile: 4: /user/username/projects/myproject/m.ts
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::createDirectoryWatcher",
+      "body": {
+        "id": 5,
+        "path": "/user/username/projects/myproject/node_modules",
+        "recursive": true
+      }
+    }
+Custom watchDirectory: 5: /user/username/projects/myproject/node_modules true undefined
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /a/lib/lib.d.ts 500 undefined WatchType: Closed Script info
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -101,11 +135,13 @@ Info seq  [hh:mm:ss:mss] event:
       "type": "event",
       "event": "CustomHandler::createFileWatcher",
       "body": {
-        "id": 4,
+        "id": 6,
         "path": "/a/lib/lib.d.ts"
       }
     }
-Custom watchFile: 4: /a/lib/lib.d.ts
+Custom watchFile: 6: /a/lib/lib.d.ts
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -113,12 +149,13 @@ Info seq  [hh:mm:ss:mss] event:
       "type": "event",
       "event": "CustomHandler::createDirectoryWatcher",
       "body": {
-        "id": 5,
+        "id": 7,
         "path": "/user/username/projects/myproject/node_modules/@types",
-        "recursive": true
+        "recursive": true,
+        "ignoreUpdate": true
       }
     }
-Custom watchDirectory: 5: /user/username/projects/myproject/node_modules/@types true
+Custom watchDirectory: 7: /user/username/projects/myproject/node_modules/@types true true
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] event:
@@ -127,19 +164,22 @@ Info seq  [hh:mm:ss:mss] event:
       "type": "event",
       "event": "CustomHandler::createDirectoryWatcher",
       "body": {
-        "id": 6,
+        "id": 8,
         "path": "/user/username/projects/node_modules/@types",
-        "recursive": true
+        "recursive": true,
+        "ignoreUpdate": true
       }
     }
-Custom watchDirectory: 6: /user/username/projects/node_modules/@types true
+Custom watchDirectory: 8: /user/username/projects/node_modules/@types true true
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/node_modules/@types 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Type roots
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 1 projectProgramVersion: 0 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (3)
+Info seq  [hh:mm:ss:mss] 	Files (5)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-1 "export class b { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 
 
 	../../../../a/lib/lib.d.ts
@@ -148,6 +188,10 @@ Info seq  [hh:mm:ss:mss] 	Files (3)
 	  Matched by default include pattern '**/*'
 	b.ts
 	  Matched by default include pattern '**/*'
+	node_modules/something/index.d.ts
+	  Imported via "something" from file 'm.ts'
+	m.ts
+	  Matched by default include pattern '**/*'
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] event:
@@ -171,12 +215,12 @@ Info seq  [hh:mm:ss:mss] event:
           "jsSize": 0,
           "jsx": 0,
           "jsxSize": 0,
-          "ts": 2,
-          "tsSize": 124,
+          "ts": 3,
+          "tsSize": 153,
           "tsx": 0,
           "tsxSize": 0,
-          "dts": 1,
-          "dtsSize": 334,
+          "dts": 2,
+          "dtsSize": 354,
           "deferred": 0,
           "deferredSize": 0
         },
@@ -209,7 +253,7 @@ Info seq  [hh:mm:ss:mss] event:
       }
     }
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (3)
+Info seq  [hh:mm:ss:mss] 	Files (5)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -223,19 +267,23 @@ After request
 
 Custom WatchedFiles::
 /a/lib/lib.d.ts: *new*
-  {"id":4,"path":"/a/lib/lib.d.ts"}
+  {"id":6,"path":"/a/lib/lib.d.ts"}
 /user/username/projects/myproject/b.ts: *new*
   {"id":3,"path":"/user/username/projects/myproject/b.ts"}
+/user/username/projects/myproject/m.ts: *new*
+  {"id":4,"path":"/user/username/projects/myproject/m.ts"}
 /user/username/projects/myproject/tsconfig.json: *new*
   {"id":1,"path":"/user/username/projects/myproject/tsconfig.json"}
 
 Custom WatchedDirectoriesRecursive::
 /user/username/projects/myproject: *new*
-  {"id":2,"path":"/user/username/projects/myproject","recursive":true}
+  {"id":2,"path":"/user/username/projects/myproject","recursive":true,"ignoreUpdate":true}
+/user/username/projects/myproject/node_modules: *new*
+  {"id":5,"path":"/user/username/projects/myproject/node_modules","recursive":true}
 /user/username/projects/myproject/node_modules/@types: *new*
-  {"id":5,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true}
+  {"id":7,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true,"ignoreUpdate":true}
 /user/username/projects/node_modules/@types: *new*
-  {"id":6,"path":"/user/username/projects/node_modules/@types","recursive":true}
+  {"id":8,"path":"/user/username/projects/node_modules/@types","recursive":true,"ignoreUpdate":true}
 
 Projects::
 /user/username/projects/myproject/tsconfig.json (Configured) *new*
@@ -255,8 +303,16 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
-Add file
+Add file: /user/username/projects/myproject/c.ts
 Before running Timeout callback:: count: 0
 //// [/user/username/projects/myproject/c.ts]
 export class a { prop = "hello"; foo() { return this.prop; } }
@@ -264,7 +320,7 @@ export class a { prop = "hello"; foo() { return this.prop; } }
 
 After running Timeout callback:: count: 0
 
-Custom watch
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/c.ts created
 Before request
 
 Info seq  [hh:mm:ss:mss] request:
@@ -272,8 +328,9 @@ Info seq  [hh:mm:ss:mss] request:
       "command": "watchChange",
       "arguments": {
         "id": 2,
-        "path": "/user/username/projects/myproject/c.ts",
-        "eventType": "create"
+        "created": [
+          "/user/username/projects/myproject/c.ts"
+        ]
       },
       "seq": 2,
       "type": "request"
@@ -310,18 +367,20 @@ Info seq  [hh:mm:ss:mss] event:
       "type": "event",
       "event": "CustomHandler::createFileWatcher",
       "body": {
-        "id": 7,
+        "id": 9,
         "path": "/user/username/projects/myproject/c.ts"
       }
     }
-Custom watchFile: 7: /user/username/projects/myproject/c.ts
+Custom watchFile: 9: /user/username/projects/myproject/c.ts
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-1 "export class b { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 	/user/username/projects/myproject/c.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 
 
@@ -331,6 +390,10 @@ Info seq  [hh:mm:ss:mss] 	Files (4)
 	  Matched by default include pattern '**/*'
 	b.ts
 	  Matched by default include pattern '**/*'
+	node_modules/something/index.d.ts
+	  Imported via "something" from file 'm.ts'
+	m.ts
+	  Matched by default include pattern '**/*'
 	c.ts
 	  Matched by default include pattern '**/*'
 
@@ -338,7 +401,7 @@ Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
 Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -346,7 +409,7 @@ Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts Proje
 Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -367,21 +430,25 @@ After running Timeout callback:: count: 0
 
 Custom WatchedFiles::
 /a/lib/lib.d.ts:
-  {"id":4,"path":"/a/lib/lib.d.ts"}
+  {"id":6,"path":"/a/lib/lib.d.ts"}
 /user/username/projects/myproject/b.ts:
   {"id":3,"path":"/user/username/projects/myproject/b.ts"}
 /user/username/projects/myproject/c.ts: *new*
-  {"id":7,"path":"/user/username/projects/myproject/c.ts"}
+  {"id":9,"path":"/user/username/projects/myproject/c.ts"}
+/user/username/projects/myproject/m.ts:
+  {"id":4,"path":"/user/username/projects/myproject/m.ts"}
 /user/username/projects/myproject/tsconfig.json:
   {"id":1,"path":"/user/username/projects/myproject/tsconfig.json"}
 
 Custom WatchedDirectoriesRecursive::
 /user/username/projects/myproject:
-  {"id":2,"path":"/user/username/projects/myproject","recursive":true}
+  {"id":2,"path":"/user/username/projects/myproject","recursive":true,"ignoreUpdate":true}
+/user/username/projects/myproject/node_modules:
+  {"id":5,"path":"/user/username/projects/myproject/node_modules","recursive":true}
 /user/username/projects/myproject/node_modules/@types:
-  {"id":5,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true}
+  {"id":7,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true,"ignoreUpdate":true}
 /user/username/projects/node_modules/@types:
-  {"id":6,"path":"/user/username/projects/node_modules/@types","recursive":true}
+  {"id":8,"path":"/user/username/projects/node_modules/@types","recursive":true,"ignoreUpdate":true}
 
 Projects::
 /user/username/projects/myproject/tsconfig.json (Configured) *changed*
@@ -406,8 +473,16 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
-Change File
+Change File: /user/username/projects/myproject/b.ts
 Before running Timeout callback:: count: 0
 //// [/user/username/projects/myproject/b.ts]
 export class a { prop = "hello"; foo() { return this.prop; } }
@@ -415,7 +490,8 @@ export class a { prop = "hello"; foo() { return this.prop; } }
 
 After running Timeout callback:: count: 0
 
-Custom watch
+Custom watch:: /user/username/projects/myproject/b.ts /user/username/projects/myproject/b.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/b.ts updated
 Before request
 
 Info seq  [hh:mm:ss:mss] request:
@@ -423,8 +499,9 @@ Info seq  [hh:mm:ss:mss] request:
       "command": "watchChange",
       "arguments": {
         "id": 3,
-        "path": "/user/username/projects/myproject/b.ts",
-        "eventType": "update"
+        "updated": [
+          "/user/username/projects/myproject/b.ts"
+        ]
       },
       "seq": 3,
       "type": "request"
@@ -467,6 +544,14 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Before running Timeout callback:: count: 2
 3: /user/username/projects/myproject/tsconfig.json
@@ -476,17 +561,19 @@ Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.jso
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 3 projectProgramVersion: 2 structureChanged: false structureIsReused:: Completely Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
 	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
 	/user/username/projects/myproject/c.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
 Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -494,7 +581,7 @@ Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts Proje
 Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -537,6 +624,14 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Before request
 
@@ -563,7 +658,7 @@ Custom watchFile:: Close:: 3: /user/username/projects/myproject/b.ts
 Info seq  [hh:mm:ss:mss] Search path: /user/username/projects/myproject
 Info seq  [hh:mm:ss:mss] For info: /user/username/projects/myproject/b.ts :: Config file name: /user/username/projects/myproject/tsconfig.json
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -579,9 +674,11 @@ After request
 
 Custom WatchedFiles::
 /a/lib/lib.d.ts:
-  {"id":4,"path":"/a/lib/lib.d.ts"}
+  {"id":6,"path":"/a/lib/lib.d.ts"}
 /user/username/projects/myproject/c.ts:
-  {"id":7,"path":"/user/username/projects/myproject/c.ts"}
+  {"id":9,"path":"/user/username/projects/myproject/c.ts"}
+/user/username/projects/myproject/m.ts:
+  {"id":4,"path":"/user/username/projects/myproject/m.ts"}
 /user/username/projects/myproject/tsconfig.json:
   {"id":1,"path":"/user/username/projects/myproject/tsconfig.json"}
 
@@ -591,11 +688,13 @@ Custom WatchedFiles *deleted*::
 
 Custom WatchedDirectoriesRecursive::
 /user/username/projects/myproject:
-  {"id":2,"path":"/user/username/projects/myproject","recursive":true}
+  {"id":2,"path":"/user/username/projects/myproject","recursive":true,"ignoreUpdate":true}
+/user/username/projects/myproject/node_modules:
+  {"id":5,"path":"/user/username/projects/myproject/node_modules","recursive":true}
 /user/username/projects/myproject/node_modules/@types:
-  {"id":5,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true}
+  {"id":7,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true,"ignoreUpdate":true}
 /user/username/projects/node_modules/@types:
-  {"id":6,"path":"/user/username/projects/node_modules/@types","recursive":true}
+  {"id":8,"path":"/user/username/projects/node_modules/@types","recursive":true,"ignoreUpdate":true}
 
 ScriptInfos::
 /a/lib/lib.d.ts
@@ -615,6 +714,14 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
 
 Before request
 
@@ -634,13 +741,13 @@ Info seq  [hh:mm:ss:mss] event:
       "type": "event",
       "event": "CustomHandler::createFileWatcher",
       "body": {
-        "id": 8,
+        "id": 10,
         "path": "/user/username/projects/myproject/b.ts"
       }
     }
-Custom watchFile: 8: /user/username/projects/myproject/b.ts
+Custom watchFile: 10: /user/username/projects/myproject/b.ts
 Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
-Info seq  [hh:mm:ss:mss] 	Files (4)
+Info seq  [hh:mm:ss:mss] 	Files (6)
 
 Info seq  [hh:mm:ss:mss] -----------------------------------------------
 Info seq  [hh:mm:ss:mss] Open files: 
@@ -654,21 +761,25 @@ After request
 
 Custom WatchedFiles::
 /a/lib/lib.d.ts:
-  {"id":4,"path":"/a/lib/lib.d.ts"}
+  {"id":6,"path":"/a/lib/lib.d.ts"}
 /user/username/projects/myproject/b.ts: *new*
-  {"id":8,"path":"/user/username/projects/myproject/b.ts"}
+  {"id":10,"path":"/user/username/projects/myproject/b.ts"}
 /user/username/projects/myproject/c.ts:
-  {"id":7,"path":"/user/username/projects/myproject/c.ts"}
+  {"id":9,"path":"/user/username/projects/myproject/c.ts"}
+/user/username/projects/myproject/m.ts:
+  {"id":4,"path":"/user/username/projects/myproject/m.ts"}
 /user/username/projects/myproject/tsconfig.json:
   {"id":1,"path":"/user/username/projects/myproject/tsconfig.json"}
 
 Custom WatchedDirectoriesRecursive::
 /user/username/projects/myproject:
-  {"id":2,"path":"/user/username/projects/myproject","recursive":true}
+  {"id":2,"path":"/user/username/projects/myproject","recursive":true,"ignoreUpdate":true}
+/user/username/projects/myproject/node_modules:
+  {"id":5,"path":"/user/username/projects/myproject/node_modules","recursive":true}
 /user/username/projects/myproject/node_modules/@types:
-  {"id":5,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true}
+  {"id":7,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true,"ignoreUpdate":true}
 /user/username/projects/node_modules/@types:
-  {"id":6,"path":"/user/username/projects/node_modules/@types","recursive":true}
+  {"id":8,"path":"/user/username/projects/node_modules/@types","recursive":true,"ignoreUpdate":true}
 
 ScriptInfos::
 /a/lib/lib.d.ts
@@ -688,3 +799,592 @@ ScriptInfos::
     version: Text-1
     containingProjects: 1
         /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Change File: /user/username/projects/myproject/c.ts
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/c.ts]
+export class a { prop = "hello"; foo() { return this.prop; } }export const y = 20;
+
+
+After running Timeout callback:: count: 0
+
+Custom watch:: /user/username/projects/myproject/c.ts /user/username/projects/myproject/c.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/c.ts updated
+Before request
+
+Info seq  [hh:mm:ss:mss] request:
+    {
+      "command": "watchChange",
+      "arguments": {
+        "id": 9,
+        "updated": [
+          "/user/username/projects/myproject/c.ts"
+        ]
+      },
+      "seq": 6,
+      "type": "request"
+    }
+Info seq  [hh:mm:ss:mss] FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] response:
+    {
+      "responseRequired": false
+    }
+After request
+
+Timeout callback:: count: 2
+5: /user/username/projects/myproject/tsconfig.json *new*
+6: *ensureProjectForOpenFiles* *new*
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 4 *changed*
+    projectProgramVersion: 2
+    dirty: true *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-1
+    pendingReloadFromDisk: true *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Before running Timeout callback:: count: 2
+5: /user/username/projects/myproject/tsconfig.json
+6: *ensureProjectForOpenFiles*
+
+Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 4 projectProgramVersion: 2 structureChanged: false structureIsReused:: Completely Elapsed:: *ms
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
+	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-1 "export const x = 10;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
+	/user/username/projects/myproject/c.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }export const y = 20;"
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::projectsUpdatedInBackground",
+      "body": {
+        "openFiles": [
+          "/user/username/projects/myproject/a.ts"
+        ]
+      }
+    }
+After running Timeout callback:: count: 0
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 4
+    projectProgramVersion: 2
+    dirty: false *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-2 *changed*
+    pendingReloadFromDisk: false *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+update with npm install
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/node_modules/something/index.d.ts]
+export const x = 10;export const y = 20;
+
+
+After running Timeout callback:: count: 0
+
+Custom watch:: /user/username/projects/myproject/node_modules /user/username/projects/myproject/node_modules/something/index.d.ts updated
+Before request
+
+Info seq  [hh:mm:ss:mss] request:
+    {
+      "command": "watchChange",
+      "arguments": {
+        "id": 5,
+        "updated": [
+          "/user/username/projects/myproject/node_modules/something/index.d.ts"
+        ]
+      },
+      "seq": 7,
+      "type": "request"
+    }
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Triggered with /user/username/projects/myproject/node_modules/something/index.d.ts :: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Triggered with /user/username/projects/myproject/node_modules/something/index.d.ts :: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Triggered with /user/username/projects/myproject/node_modules/something/index.d.ts :: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.jsonFailedLookupInvalidation
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Triggered with /user/username/projects/myproject/node_modules/something/index.d.ts :: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] response:
+    {
+      "responseRequired": false
+    }
+After request
+
+Timeout callback:: count: 3
+7: /user/username/projects/myproject/tsconfig.json *new*
+8: *ensureProjectForOpenFiles* *new*
+9: /user/username/projects/myproject/tsconfig.jsonFailedLookupInvalidation *new*
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 5 *changed*
+    projectProgramVersion: 2
+    dirty: true *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts *changed*
+    version: Text-1
+    pendingReloadFromDisk: true *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Before running Timeout callback:: count: 3
+7: /user/username/projects/myproject/tsconfig.json
+8: *ensureProjectForOpenFiles*
+9: /user/username/projects/myproject/tsconfig.jsonFailedLookupInvalidation
+
+Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*, Cancelled earlier one
+Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 5 projectProgramVersion: 2 structureChanged: true structureIsReused:: SafeModules Elapsed:: *ms
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
+	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-2 "export const x = 10;export const y = 20;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
+	/user/username/projects/myproject/c.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }export const y = 20;"
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+After running Timeout callback:: count: 1
+
+Timeout callback:: count: 1
+8: *ensureProjectForOpenFiles* *deleted*
+9: /user/username/projects/myproject/tsconfig.jsonFailedLookupInvalidation *deleted*
+10: *ensureProjectForOpenFiles* *new*
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 5
+    projectProgramVersion: 3 *changed*
+    dirty: false *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts *changed*
+    version: Text-2 *changed*
+    pendingReloadFromDisk: false *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Before running Timeout callback:: count: 1
+10: *ensureProjectForOpenFiles*
+
+Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (6)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::projectsUpdatedInBackground",
+      "body": {
+        "openFiles": [
+          "/user/username/projects/myproject/a.ts"
+        ]
+      }
+    }
+After running Timeout callback:: count: 0
+
+Add file: /user/username/projects/myproject/d.ts
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/d.ts]
+export class a { prop = "hello"; foo() { return this.prop; } }
+
+
+After running Timeout callback:: count: 0
+
+Change File: /user/username/projects/myproject/c.ts
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/c.ts]
+export class a { prop = "hello"; foo() { return this.prop; } }export const y = 20;export const z = 30;
+
+
+After running Timeout callback:: count: 0
+
+Add File: /user/username/projects/myproject/e.ts
+Before running Timeout callback:: count: 0
+//// [/user/username/projects/myproject/e.ts]
+export class a { prop = "hello"; foo() { return this.prop; } }
+
+
+After running Timeout callback:: count: 0
+
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/d.ts created
+Custom watch:: /user/username/projects/myproject/c.ts /user/username/projects/myproject/c.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/c.ts updated
+Custom watch:: /user/username/projects/myproject /user/username/projects/myproject/e.ts created
+Before request
+
+Info seq  [hh:mm:ss:mss] request:
+    {
+      "command": "watchChange",
+      "arguments": [
+        {
+          "id": 2,
+          "created": [
+            "/user/username/projects/myproject/d.ts",
+            "/user/username/projects/myproject/e.ts"
+          ]
+        },
+        {
+          "id": 9,
+          "updated": [
+            "/user/username/projects/myproject/c.ts"
+          ]
+        }
+      ],
+      "seq": 8,
+      "type": "request"
+    }
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Triggered with /user/username/projects/myproject/d.ts :: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Triggered with /user/username/projects/myproject/d.ts :: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Triggered with /user/username/projects/myproject/e.ts :: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json, Cancelled earlier one
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*, Cancelled earlier one
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Triggered with /user/username/projects/myproject/e.ts :: WatchInfo: /user/username/projects/myproject 1 undefined Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
+Info seq  [hh:mm:ss:mss] FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] Scheduled: /user/username/projects/myproject/tsconfig.json, Cancelled earlier one
+Info seq  [hh:mm:ss:mss] Scheduled: *ensureProjectForOpenFiles*, Cancelled earlier one
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms FileWatcher:: Triggered with /user/username/projects/myproject/c.ts 1:: WatchInfo: /user/username/projects/myproject/c.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] response:
+    {
+      "responseRequired": false
+    }
+After request
+
+Timeout callback:: count: 2
+15: /user/username/projects/myproject/tsconfig.json *new*
+16: *ensureProjectForOpenFiles* *new*
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 6 *changed*
+    projectProgramVersion: 3
+    dirty: true *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-2
+    pendingReloadFromDisk: true *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+
+Before running Timeout callback:: count: 2
+15: /user/username/projects/myproject/tsconfig.json
+16: *ensureProjectForOpenFiles*
+
+Info seq  [hh:mm:ss:mss] Running: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/d.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::createFileWatcher",
+      "body": {
+        "id": 11,
+        "path": "/user/username/projects/myproject/d.ts"
+      }
+    }
+Custom watchFile: 11: /user/username/projects/myproject/d.ts
+Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/e.ts 500 undefined WatchType: Closed Script info
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::createFileWatcher",
+      "body": {
+        "id": 12,
+        "path": "/user/username/projects/myproject/e.ts"
+      }
+    }
+Custom watchFile: 12: /user/username/projects/myproject/e.ts
+Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /user/username/projects/myproject/tsconfig.json projectStateVersion: 6 projectProgramVersion: 3 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (8)
+	/a/lib/lib.d.ts Text-1 "/// <reference no-default-lib=\"true\"/>\ninterface Boolean {}\ninterface Function {}\ninterface CallableFunction {}\ninterface NewableFunction {}\ninterface IArguments {}\ninterface Number { toExponential: any; }\ninterface Object {}\ninterface RegExp {}\ninterface String { charAt: any; }\ninterface Array<T> { length: number; [n: number]: T; }"
+	/user/username/projects/myproject/a.ts SVC-1-0 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/b.ts Text-2 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/node_modules/something/index.d.ts Text-2 "export const x = 10;export const y = 20;"
+	/user/username/projects/myproject/m.ts Text-1 "import { x } from \"something\""
+	/user/username/projects/myproject/c.ts Text-3 "export class a { prop = \"hello\"; foo() { return this.prop; } }export const y = 20;export const z = 30;"
+	/user/username/projects/myproject/d.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+	/user/username/projects/myproject/e.ts Text-1 "export class a { prop = \"hello\"; foo() { return this.prop; } }"
+
+
+	../../../../a/lib/lib.d.ts
+	  Default library for target 'es5'
+	a.ts
+	  Matched by default include pattern '**/*'
+	b.ts
+	  Matched by default include pattern '**/*'
+	node_modules/something/index.d.ts
+	  Imported via "something" from file 'm.ts'
+	m.ts
+	  Matched by default include pattern '**/*'
+	c.ts
+	  Matched by default include pattern '**/*'
+	d.ts
+	  Matched by default include pattern '**/*'
+	e.ts
+	  Matched by default include pattern '**/*'
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Running: *ensureProjectForOpenFiles*
+Info seq  [hh:mm:ss:mss] Before ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (8)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] After ensureProjectForOpenFiles:
+Info seq  [hh:mm:ss:mss] Project '/user/username/projects/myproject/tsconfig.json' (Configured)
+Info seq  [hh:mm:ss:mss] 	Files (8)
+
+Info seq  [hh:mm:ss:mss] -----------------------------------------------
+Info seq  [hh:mm:ss:mss] Open files: 
+Info seq  [hh:mm:ss:mss] 	FileName: /user/username/projects/myproject/a.ts ProjectRootPath: undefined
+Info seq  [hh:mm:ss:mss] 		Projects: /user/username/projects/myproject/tsconfig.json
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "CustomHandler::projectsUpdatedInBackground",
+      "body": {
+        "openFiles": [
+          "/user/username/projects/myproject/a.ts"
+        ]
+      }
+    }
+After running Timeout callback:: count: 0
+
+Custom WatchedFiles::
+/a/lib/lib.d.ts:
+  {"id":6,"path":"/a/lib/lib.d.ts"}
+/user/username/projects/myproject/b.ts:
+  {"id":10,"path":"/user/username/projects/myproject/b.ts"}
+/user/username/projects/myproject/c.ts:
+  {"id":9,"path":"/user/username/projects/myproject/c.ts"}
+/user/username/projects/myproject/d.ts: *new*
+  {"id":11,"path":"/user/username/projects/myproject/d.ts"}
+/user/username/projects/myproject/e.ts: *new*
+  {"id":12,"path":"/user/username/projects/myproject/e.ts"}
+/user/username/projects/myproject/m.ts:
+  {"id":4,"path":"/user/username/projects/myproject/m.ts"}
+/user/username/projects/myproject/tsconfig.json:
+  {"id":1,"path":"/user/username/projects/myproject/tsconfig.json"}
+
+Custom WatchedDirectoriesRecursive::
+/user/username/projects/myproject:
+  {"id":2,"path":"/user/username/projects/myproject","recursive":true,"ignoreUpdate":true}
+/user/username/projects/myproject/node_modules:
+  {"id":5,"path":"/user/username/projects/myproject/node_modules","recursive":true}
+/user/username/projects/myproject/node_modules/@types:
+  {"id":7,"path":"/user/username/projects/myproject/node_modules/@types","recursive":true,"ignoreUpdate":true}
+/user/username/projects/node_modules/@types:
+  {"id":8,"path":"/user/username/projects/node_modules/@types","recursive":true,"ignoreUpdate":true}
+
+Projects::
+/user/username/projects/myproject/tsconfig.json (Configured) *changed*
+    projectStateVersion: 6
+    projectProgramVersion: 4 *changed*
+    dirty: false *changed*
+
+ScriptInfos::
+/a/lib/lib.d.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/a.ts (Open)
+    version: SVC-1-0
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json *default*
+/user/username/projects/myproject/b.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/c.ts *changed*
+    version: Text-3 *changed*
+    pendingReloadFromDisk: false *changed*
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/d.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/e.ts *new*
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/m.ts
+    version: Text-1
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json
+/user/username/projects/myproject/node_modules/something/index.d.ts
+    version: Text-2
+    containingProjects: 1
+        /user/username/projects/myproject/tsconfig.json