@theia/filesystem 1.73.0-next.2 → 1.73.0-next.24

package/lib/node/parcel-watcher/parcel-watcher-retry.spec.js

@@ -0,0 +1,102 @@
+"use strict";
+// *****************************************************************************
+// Copyright (C) 2026 EclipseSource and others.
+//
+// This program and the accompanying materials are made available under the
+// terms of the Eclipse Public License v. 2.0 which is available at
+// http://www.eclipse.org/legal/epl-2.0.
+//
+// This Source Code may also be made available under the following Secondary
+// Licenses when the conditions for such availability set forth in the Eclipse
+// Public License v. 2.0 are satisfied: GNU General Public License, version 2
+// with the GNU Classpath Exception which is available at
+// https://www.gnu.org/software/classpath/license.html.
+//
+// SPDX-License-Identifier: EPL-2.0 OR GPL-2.0-only WITH Classpath-exception-2.0
+// *****************************************************************************
+Object.defineProperty(exports, "__esModule", { value: true });
+const chai = require("chai");
+const sinon = require("sinon");
+const temp = require("temp");
+const fs = require("@theia/core/shared/fs-extra");
+const node_1 = require("@theia/core/lib/node");
+const parcel_filesystem_service_1 = require("./parcel-filesystem-service");
+// We require the *same* module object that the production code imports from, so that
+// stubbing its `subscribe` export is observed by `ParcelWatcher`. The `@theia/core/shared`
+// shim simply re-exports `require('@parcel/watcher')`, so this is the identical reference.
+// eslint-disable-next-line @typescript-eslint/no-var-requires
+const parcel = require('@theia/core/shared/@parcel/watcher');
+const expect = chai.expect;
+const track = temp.track();
+/**
+ * Covers the inotify-tree-race fix in `ParcelWatcher.start()`:
+ *
+ * parcel-watcher walks the directory tree and only then calls `inotify_add_watch`
+ * on each subdirectory. If a subdirectory disappears between the walk and the add
+ * (common when watching dirs that contain rotated logs/temp folders), the syscall
+ * returns ENOENT and parcel-watcher fails the *entire* subscribe. The fix retries
+ * `createWatcher` a few times, but only when (a) the underlying error indicates a
+ * missing path and (b) the watched root itself still exists.
+ */
+describe('parcel-filesystem-watcher transient ENOENT handling', function () {
+    this.timeout(20000);
+    let root;
+    let service;
+    let subscribeStub;
+    let consoleErrorStub;
+    let onError;
+    beforeEach(() => {
+        const tempPath = temp.mkdirSync('parcel-enoent-root');
+        root = node_1.FileUri.create(fs.realpathSync(tempPath));
+        // start() now logs the underlying error to stderr on failure; silence it
+        // so the test output stays readable.
+        consoleErrorStub = sinon.stub(console, 'error');
+        service = new parcel_filesystem_service_1.ParcelFileSystemWatcherService({ verbose: false });
+        onError = sinon.stub();
+        service.setClient({
+            onDidFilesChanged: () => undefined,
+            onError,
+        });
+    });
+    afterEach(() => {
+        subscribeStub?.restore();
+        consoleErrorStub.restore();
+        track.cleanupSync();
+    });
+    it('retries when subscribe throws a transient ENOENT and the watched root still exists', async () => {
+        let attempts = 0;
+        subscribeStub = sinon.stub(parcel, 'subscribe').callsFake(async () => {
+            attempts++;
+            if (attempts < 3) {
+                throw new Error('No such file or directory at /tmp/rotated-log');
+            }
+            return { unsubscribe: async () => undefined };
+        });
+        await service.watchFileChanges(0, root.toString());
+        // Backoff schedule for two retries: 100 + 200 = 300ms. Leave generous margin.
+        await new Promise(resolve => setTimeout(resolve, 800));
+        expect(attempts, 'subscribe should have been retried until it succeeded').to.equal(3);
+        expect(onError.called, 'no error should surface to the client once the retry recovered').to.equal(false);
+    });
+    it('does not retry on non-ENOENT errors and surfaces the failure immediately', async () => {
+        subscribeStub = sinon.stub(parcel, 'subscribe').callsFake(async () => {
+            throw new Error('EACCES: permission denied');
+        });
+        await service.watchFileChanges(0, root.toString());
+        await new Promise(resolve => setTimeout(resolve, 200));
+        expect(subscribeStub.callCount, 'non-transient errors must not trigger any retry').to.equal(1);
+        expect(onError.called, 'error must be reported to the client').to.equal(true);
+    });
+    it('gives up after the retry budget is exhausted on persistent ENOENT', async () => {
+        subscribeStub = sinon.stub(parcel, 'subscribe').callsFake(async () => {
+            throw new Error('No such file or directory at /tmp/rotated-log');
+        });
+        await service.watchFileChanges(0, root.toString());
+        // Total backoff is 100+200+300+400 = 1000ms; leave a margin for scheduling.
+        await new Promise(resolve => setTimeout(resolve, 1700));
+        // Initial attempt + 4 retries = 5 total subscribe calls.
+        expect(subscribeStub.callCount, 'should retry up to the budget then give up').to.equal(5);
+        expect(onError.called, 'error must surface once the retry budget is exhausted').to.equal(true);
+    });
+});
+//# sourceMappingURL=parcel-watcher-retry.spec.js.map

package/lib/node/parcel-watcher/parcel-watcher-retry.spec.js.map

@@ -0,0 +1 @@
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package/lib/node/upload/node-file-upload-service.d.ts

@@ -1,6 +1,8 @@
 import express = require('@theia/core/shared/express');
 import { BackendApplicationContribution } from '@theia/core/lib/node';
+import { ILogger } from '@theia/core';
 export declare class NodeFileUploadService implements BackendApplicationContribution {
+    protected readonly logger: ILogger;
     private static readonly UPLOAD_DIR;
     configure(app: express.Application): Promise<void>;
     /**

package/lib/node/upload/node-file-upload-service.d.ts.map

@@ -1 +1 @@
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package/lib/node/upload/node-file-upload-service.js

@@ -25,6 +25,7 @@ const fs = require("@theia/core/shared/fs-extra");
 const node_1 = require("@theia/core/lib/node");
 const inversify_1 = require("@theia/core/shared/inversify");
 const file_upload_1 = require("../../common/file-upload");
+const core_1 = require("@theia/core");
 let NodeFileUploadService = class NodeFileUploadService {
     static { NodeFileUploadService_1 = this; }
     static { this.UPLOAD_DIR = 'theia_upload'; }
@@ -33,8 +34,8 @@ let NodeFileUploadService = class NodeFileUploadService {
             this.getTemporaryUploadDest(),
             this.getHttpFileUploadPath()
         ]);
-        console.debug(`HTTP file upload URL path: ${http_path}`);
-        console.debug(`Backend file upload cache path: ${dest}`);
+        this.logger.debug(`HTTP file upload URL path: ${http_path}`);
+        this.logger.debug(`Backend file upload cache path: ${dest}`);
         app.post(http_path, 
         // `multer` handles `multipart/form-data` containing our file to upload.
         multer({ dest }).single('file'), (request, response, next) => this.handleFileUpload(request, response));
@@ -69,7 +70,7 @@ let NodeFileUploadService = class NodeFileUploadService {
             response.status(200).send(target); // ok
         }
         catch (error) {
-            console.error(error);
+            this.logger.error(error);
             if (error.message) {
                 // internal server error with error message as response
                 response.status(500).send(error.message);
@@ -82,6 +83,11 @@ let NodeFileUploadService = class NodeFileUploadService {
     }
 };
 exports.NodeFileUploadService = NodeFileUploadService;
+tslib_1.__decorate([
+    (0, inversify_1.inject)(core_1.ILogger),
+    (0, inversify_1.named)('filesystem:NodeFileUploadService'),
+    tslib_1.__metadata("design:type", Object)
+], NodeFileUploadService.prototype, "logger", void 0);
 exports.NodeFileUploadService = NodeFileUploadService = NodeFileUploadService_1 = tslib_1.__decorate([
     (0, inversify_1.injectable)()
 ], NodeFileUploadService);

package/lib/node/upload/node-file-upload-service.js.map

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+{"version":3,"file":"node-file-upload-service.js","sourceRoot":"","sources":["../../../src/node/upload/node-file-upload-service.ts"],"names":[],"mappings":";AAAA,gFAAgF;AAChF,yCAAyC;AACzC,EAAE;AACF,2EAA2E;AAC3E,mEAAmE;AACnE,wCAAwC;AACxC,EAAE;AACF,4EAA4E;AAC5E,8EAA8E;AAC9E,6EAA6E;AAC7E,yDAAyD;AACzD,uDAAuD;AACvD,EAAE;AACF,gFAAgF;AAChF,gFAAgF;;;;;AAEhF,iCAAkC;AAClC,6BAA8B;AAC9B,yBAA0B;AAE1B,kDAAmD;AACnD,+CAA+E;AAC/E,4DAAyE;AACzE,0DAAiE;AACjE,sCAAsC;AAG/B,IAAM,qBAAqB,GAA3B,MAAM,qBAAqB;;aAKN,eAAU,GAAG,cAAc,AAAjB,CAAkB;IAEpD,KAAK,CAAC,SAAS,CAAC,GAAwB;QACpC,MAAM,CAAC,IAAI,EAAE,SAAS,CAAC,GAAG,MAAM,OAAO,CAAC,GAAG,CAAC;YACxC,IAAI,CAAC,sBAAsB,EAAE;YAC7B,IAAI,CAAC,qBAAqB,EAAE;SAC/B,CAAC,CAAC;QACH,IAAI,CAAC,MAAM,CAAC,KAAK,CAAC,8BAA8B,SAAS,EAAE,CAAC,CAAC;QAC7D,IAAI,CAAC,MAAM,CAAC,KAAK,CAAC,mCAAmC,IAAI,EAAE,CAAC,CAAC;QAC7D,GAAG,CAAC,IAAI,CACJ,SAAS;QACT,wEAAwE;QACxE,MAAM,CAAC,EAAE,IAAI,EAAE,CAAC,CAAC,MAAM,CAAC,MAAM,CAAC,EAC/B,CAAC,OAAO,EAAE,QAAQ,EAAE,IAAI,EAAE,EAAE,CAAC,IAAI,CAAC,gBAAgB,CAAC,OAAO,EAAE,QAAQ,CAAC,CACxE,CAAC;IACN,CAAC;IAED;;OAEG;IACO,KAAK,CAAC,qBAAqB;QACjC,OAAO,mCAAqB,CAAC;IACjC,CAAC;IAED;;OAEG;IACO,KAAK,CAAC,sBAAsB;QAClC,OAAO,IAAI,CAAC,IAAI,CAAC,EAAE,CAAC,MAAM,EAAE,EAAE,uBAAqB,CAAC,UAAU,CAAC,CAAC;IACpE,CAAC;IAES,KAAK,CAAC,gBAAgB,CAAC,OAAwB,EAAE,QAA0B;QACjF,MAAM,MAAM,GAAG,OAAO,CAAC,IAAI,CAAC;QAC5B,IAAI,CAAC,OAAO,CAAC,IAAI,IAAI,OAAO,MAAM,KAAK,QAAQ,IAAI,OAAO,MAAM,CAAC,GAAG,KAAK,QAAQ,EAAE,CAAC;YAChF,QAAQ,CAAC,UAAU,CAAC,GAAG,CAAC,CAAC,CAAC,cAAc;YACxC,OAAO;QACX,CAAC;QACD,IAAI,CAAC;YACD,MAAM,MAAM,GAAG,cAAO,CAAC,MAAM,CAAC,MAAM,CAAC,GAAG,CAAC,CAAC;YAC1C,IAAI,CAAC,MAAM,CAAC,WAAW,EAAE,CAAC;gBACtB,MAAM,EAAE,CAAC,IAAI,CAAC,OAAO,CAAC,IAAI,CAAC,IAAI,EAAE,MAAM,EAAE,EAAE,SAAS,EAAE,IAAI,EAAE,CAAC,CAAC;YAClE,CAAC;iBAAM,CAAC;gBACJ,kEAAkE;gBAClE,EAAE,CAAC,MAAM,CAAC,OAAO,CAAC,IAAI,CAAC,IAAI,EAAE,OAAO,CAAC,IAAI,CAAC,IAAI,CAAC,OAAO,CAAC,OAAO,CAAC,IAAI,CAAC,QAAQ,EAAE,OAAO,CAAC,IAAI,CAAC,YAAY,CAAC,CAAC,CAAC;YAC9G,CAAC;YACD,QAAQ,CAAC,MAAM,CAAC,GAAG,CAAC,CAAC,IAAI,CAAC,MAAM,CAAC,CAAC,CAAC,KAAK;QAC5C,CAAC;QAAC,OAAO,KAAK,EAAE,CAAC;YACb,IAAI,CAAC,MAAM,CAAC,KAAK,CAAC,KAAK,CAAC,CAAC;YACzB,IAAI,KAAK,CAAC,OAAO,EAAE,CAAC;gBAChB,uDAAuD;gBACvD,QAAQ,CAAC,MAAM,CAAC,GAAG,CAAC,CAAC,IAAI,CAAC,KAAK,CAAC,OAAO,CAAC,CAAC;YAC7C,CAAC;iBAAM,CAAC;gBACJ,gCAAgC;gBAChC,QAAQ,CAAC,UAAU,CAAC,GAAG,CAAC,CAAC;YAC7B,CAAC;QACL,CAAC;IACL,CAAC;;AA7DQ,sDAAqB;AAGX;IADlB,IAAA,kBAAM,EAAC,cAAO,CAAC;IAAE,IAAA,iBAAK,EAAC,kCAAkC,CAAC;;qDACxB;gCAH1B,qBAAqB;IADjC,IAAA,sBAAU,GAAE;GACA,qBAAqB,CA+DjC"}

package/package.json

@@ -1,9 +1,9 @@
 {
   "name": "@theia/filesystem",
-  "version": "1.73.0-next.2+8ed51a5e94d",
+  "version": "1.73.0-next.24+ed85d4937",
   "description": "Theia - FileSystem Extension",
   "dependencies": {
-    "@theia/core": "1.73.0-next.2+8ed51a5e94d",
+    "@theia/core": "1.73.0-next.24+ed85d4937",
     "@types/body-parser": "^1.19.6",
     "@types/multer": "^1.4.13",
     "@types/tar-fs": "^1.16.3",
@@ -82,5 +82,5 @@
   "nyc": {
     "extends": "../../configs/nyc.json"
   },
-  "gitHead": "8ed51a5e94d15a6003725683a14773c6f8d64ac6"
+  "gitHead": "ed85d49379279b6472543df174249476e1619bac"
 }

package/src/browser/file-service.ts

@@ -68,7 +68,7 @@ import { Mutable } from '@theia/core/lib/common/types';
 import { readFileIntoStream } from '../common/io';
 import { FileSystemWatcherErrorHandler } from './filesystem-watcher-error-handler';
 import { FileSystemUtils } from '../common/filesystem-utils';
-import { nls } from '@theia/core';
+import { nls, ILogger } from '@theia/core';
 import { MarkdownString } from '@theia/core/lib/common/markdown-rendering';
 
 export interface FileOperationParticipant {
@@ -305,6 +305,9 @@ export class FileService {
     @inject(FileSystemWatcherErrorHandler)
     protected readonly watcherErrorHandler: FileSystemWatcherErrorHandler;
 
+    @inject(ILogger) @named('filesystem:FileService')
+    protected readonly logger: ILogger;
+
     @postConstruct()
     protected init(): void {
         for (const contribution of this.contributions.getContributions()) {
@@ -581,7 +584,7 @@ export class FileService {
 
                         return await this.toFileStat(provider, childResource, childStat, entries.length, resolveMetadata, recurse);
                     } catch (error) {
-                        console.trace(error);
+                        this.logger.error(error);
 
                         return null; // can happen e.g. due to permission errors
                     }
@@ -590,7 +593,7 @@ export class FileService {
                 // make sure to get rid of null values that signal a failure to resolve a particular entry
                 fileStat.children = resolvedEntries.filter(e => !!e) as FileStat[];
             } catch (error) {
-                console.trace(error);
+                this.logger.error(error);
 
                 fileStat.children = []; // gracefully handle errors, we may not have permissions to read
             }
@@ -615,7 +618,7 @@ export class FileService {
             try {
                 return { stat: await this.doResolveFile(entry.resource, entry.options), success: true };
             } catch (error) {
-                console.trace(error);
+                this.logger.error(error);
 
                 return { stat: undefined, success: false };
             }
@@ -1454,7 +1457,7 @@ export class FileService {
             } else {
                 watchDisposable = disposable;
             }
-        }, error => console.error(error));
+        }, error => this.logger.error(error));
 
         return Disposable.create(() => watchDisposable.dispose());
     }
@@ -2030,7 +2033,7 @@ export class FileService {
                             timeout(participantsTimeout, cancellationTokenSource.token).then(() => cancellationTokenSource.dispose(), () => { /* no-op if cancelled */ })
                         ]);
                     } catch (err) {
-                        console.warn(err);
+                        this.logger.warn(err);
                     }
                 }
             },

package/src/browser/file-tree/file-tree-widget.tsx

@@ -15,7 +15,7 @@
 // *****************************************************************************
 
 import * as React from '@theia/core/shared/react';
-import { injectable, inject } from '@theia/core/shared/inversify';
+import { injectable, inject, named } from '@theia/core/shared/inversify';
 import { DisposableCollection, Disposable } from '@theia/core/lib/common/disposable';
 import URI from '@theia/core/lib/common/uri';
 import { UriSelection } from '@theia/core/lib/common/selection';
@@ -26,7 +26,7 @@ import { FileTreeModel } from './file-tree-model';
 import { IconThemeService } from '@theia/core/lib/browser/icon-theme-service';
 import { ApplicationShell } from '@theia/core/lib/browser/shell';
 import { FileStat, FileType } from '../../common/files';
-import { isOSX } from '@theia/core';
+import { isOSX, ILogger } from '@theia/core';
 import { FileUploadService } from '../../common/upload/file-upload';
 
 export const FILE_TREE_CLASS = 'theia-FileTree';
@@ -45,6 +45,9 @@ export class FileTreeWidget extends CompressedTreeWidget {
     @inject(IconThemeService)
     protected readonly iconThemeService: IconThemeService;
 
+    @inject(ILogger) @named('filesystem:FileTreeWidget')
+    protected readonly logger: ILogger;
+
     constructor(
         @inject(TreeProps) props: TreeProps,
         @inject(FileTreeModel) override readonly model: FileTreeModel,
@@ -201,7 +204,7 @@ export class FileTreeWidget extends CompressedTreeWidget {
             }
         } catch (e) {
             if (!isCancelled(e)) {
-                console.error(e);
+                this.logger.error(e);
             }
         }
     }

package/src/browser/filesystem-frontend-contribution.ts

@@ -14,7 +14,7 @@
 // SPDX-License-Identifier: EPL-2.0 OR GPL-2.0-only WITH Classpath-exception-2.0
 // *****************************************************************************
 
-import { CorePreferences, nls } from '@theia/core';
+import { CorePreferences, nls, ILogger } from '@theia/core';
 import {
     ApplicationShell,
     CommonCommands,
@@ -35,7 +35,7 @@ import { Command, CommandContribution, CommandRegistry } from '@theia/core/lib/c
 import { Deferred } from '@theia/core/lib/common/promise-util';
 import URI from '@theia/core/lib/common/uri';
 import { environment } from '@theia/core/shared/@theia/application-package/lib/environment';
-import { inject, injectable } from '@theia/core/shared/inversify';
+import { inject, injectable, named } from '@theia/core/shared/inversify';
 import { UserWorkingDirectoryProvider } from '@theia/core/lib/browser/user-working-directory-provider';
 import { FileChangeType, FileChangesEvent, FileOperation } from '../common/files';
 import { FileDialogService, SaveFileDialogProps } from './file-dialog';
@@ -95,6 +95,9 @@ export class FileSystemFrontendContribution implements FrontendApplicationContri
     @inject(UserWorkingDirectoryProvider)
     protected readonly workingDirectory: UserWorkingDirectoryProvider;
 
+    @inject(ILogger) @named('filesystem:FileSystemFrontendContribution')
+    protected readonly logger: ILogger;
+
     protected onDidChangeEditorFileEmitter = new Emitter<{ editor: NavigatableWidget, type: FileChangeType }>();
     readonly onDidChangeEditorFile = this.onDidChangeEditorFileEmitter.event;
 
@@ -171,7 +174,7 @@ export class FileSystemFrontendContribution implements FrontendApplicationContri
             return fileUploadResult;
         } catch (e) {
             if (!isCancelled(e)) {
-                console.error(e);
+                this.logger.error(e);
             }
         }
     }
@@ -227,7 +230,7 @@ export class FileSystemFrontendContribution implements FrontendApplicationContri
             try {
                 await operation();
             } catch (e) {
-                console.error(e);
+                this.logger.error(e);
             }
         });
     }

package/src/node/disk-file-system-provider.ts

@@ -22,7 +22,8 @@
 /* eslint-disable no-null/no-null */
 /* eslint-disable @typescript-eslint/no-shadow */
 
-import { injectable, inject, postConstruct } from '@theia/core/shared/inversify';
+import { injectable, inject, postConstruct, named } from '@theia/core/shared/inversify';
+import { ILogger } from '@theia/core';
 import { basename, dirname, normalize, join } from 'path';
 import { generateUuid } from '@theia/core/lib/common/uuid';
 import * as os from 'os';
@@ -109,6 +110,9 @@ export class DiskFileSystemProvider implements Disposable,
     @inject(EncodingService)
     protected readonly encodingService: EncodingService;
 
+    @inject(ILogger) @named('filesystem:DiskFileSystemProvider')
+    protected readonly logger: ILogger;
+
     @postConstruct()
     protected init(): void {
         this.toDispose.push(this.watcher);
@@ -220,7 +224,7 @@ export class DiskFileSystemProvider implements Disposable,
                     const stat = await this.stat(resource.resolve(child));
                     result.push([child, stat.type]);
                 } catch (error) {
-                    console.trace(error); // ignore errors for individual entries that can arise from permission denied
+                    this.logger.error(error); // ignore errors for individual entries that can arise from permission denied
                 }
             }));
 
@@ -332,7 +336,7 @@ export class DiskFileSystemProvider implements Disposable,
                         // After a successful truncate() the flag can be set to 'r+' which will not truncate.
                         flags = 'r+';
                     } catch (error) {
-                        console.trace(error);
+                        this.logger.error(error);
                     }
                 }
 
@@ -384,7 +388,7 @@ export class DiskFileSystemProvider implements Disposable,
                     // In some exotic setups it is well possible that node fails to sync
                     // In that case we disable flushing and log the error to our logger
                     this.canFlush = false;
-                    console.error(error);
+                    this.logger.error(error);
                 }
             }
 

package/src/node/parcel-watcher/parcel-filesystem-service.ts

@@ -27,7 +27,15 @@ import { subscribe, Options, AsyncSubscription, Event } from '@theia/core/shared
 import { isOSX, isWindows } from '@theia/core';
 
 export interface ParcelWatcherOptions {
+    /** Compiled exclude patterns, used to filter events after they arrive. */
     ignored: Minimatch[]
+    /**
+     * Raw exclude patterns, passed to the native parcel `ignore` option so that excluded
+     * directories are never crawled or watched in the first place (rather than only having
+     * their events filtered out afterwards). This is what actually keeps the number of OS
+     * file watches (e.g. inotify watches on Linux) bounded on large workspaces.
+     */
+    ignorePatterns: string[]
 }
 
 export const ParcelFileSystemWatcherServerOptions = Symbol('ParcelFileSystemWatcherServerOptions');
@@ -132,6 +140,7 @@ export class ParcelWatcher {
             if (error === WatcherDisposal) {
                 return false;
             }
+            console.error(`Watcher failed to start at "${this.fsPath}":`, error);
             this._dispose();
             this.fireError();
             throw error;
@@ -219,7 +228,33 @@ export class ParcelWatcher {
             this.assertNotDisposed();
         }
         this.assertNotDisposed();
-        const watcher = await this.createWatcher();
+        // This race is specific to Linux/inotify: parcel-watcher's inotify backend walks
+        // the tree and then calls inotify_add_watch on every subdirectory. If a subdirectory
+        // disappears between the walk and the add (common when watching dirs that contain
+        // auto-rotated log/temp folders), the syscall returns ENOENT and parcel-watcher fails
+        // the entire subscribe. Retry a few times: by the next walk the gone-but-not-forgotten
+        // dir is no longer present. Windows (ReadDirectoryChangesW) and macOS (FSEvents) watch
+        // the whole subtree from a single handle on the root and never register per-subdirectory
+        // watches, so they cannot hit this race; the retry is simply a no-op there.
+        let watcher: AsyncSubscription | undefined;
+        let attempt = 0;
+        while (true) {
+            try {
+                watcher = await this.createWatcher();
+                break;
+            } catch (error) {
+                const message: string = (error && error.message) || '';
+                const isTransientEnoent = message.includes('No such file or directory')
+                    && await fsp.stat(this.fsPath).then(() => true, () => false);
+                if (!isTransientEnoent || attempt >= 4) {
+                    throw error;
+                }
+                attempt++;
+                this.assertNotDisposed();
+                await timeout(100 * attempt);
+                this.assertNotDisposed();
+            }
+        }
         this.assertNotDisposed();
         this.debug('STARTED', `disposed=${this.disposed}`);
         // The watcher could be disposed while it was starting, make sure to check for this:
@@ -260,7 +295,14 @@ export class ParcelWatcher {
             }
         }, {
             backend: ParcelWatcher.PARCEL_WATCHER_BACKEND,
-            ...this.parcelFileSystemWatchServerOptions.parcelOptions
+            ...this.parcelFileSystemWatchServerOptions.parcelOptions,
+            // Pass the excludes to parcel's native `ignore` so excluded directories are pruned
+            // from the watch tree (no OS watch is placed), not merely filtered out of the event
+            // stream. Mirrors VS Code's parcel watcher (`ignore: <request excludes>`).
+            ignore: [
+                ...(this.parcelFileSystemWatchServerOptions.parcelOptions.ignore ?? []),
+                ...this.watcherOptions.ignorePatterns
+            ]
         });
     }
 
@@ -435,6 +477,7 @@ export class ParcelFileSystemWatcherService implements FileSystemWatcherService
         const watcherOptions: ParcelWatcherOptions = {
             ignored: options.ignored
                 .map(pattern => new Minimatch(pattern, { dot: true })),
+            ignorePatterns: options.ignored,
         };
         return new ParcelWatcher(clientId, fsPath, watcherOptions, this.options, this.maybeClient);
     }

package/src/node/parcel-watcher/parcel-watcher-exclude.spec.ts

@@ -0,0 +1,91 @@
+// *****************************************************************************
+// Copyright (C) 2026 Safi Seid-Ahmad, K2view and others.
+//
+// This program and the accompanying materials are made available under the
+// terms of the Eclipse Public License v. 2.0 which is available at
+// http://www.eclipse.org/legal/epl-2.0.
+//
+// This Source Code may also be made available under the following Secondary
+// Licenses when the conditions for such availability set forth in the Eclipse
+// Public License v. 2.0 are satisfied: GNU General Public License, version 2
+// with the GNU Classpath Exception which is available at
+// https://www.gnu.org/software/classpath/license.html.
+//
+// SPDX-License-Identifier: EPL-2.0 OR GPL-2.0-only WITH Classpath-exception-2.0
+// *****************************************************************************
+
+import * as chai from 'chai';
+import * as sinon from 'sinon';
+import * as temp from 'temp';
+import * as fs from '@theia/core/shared/fs-extra';
+import URI from '@theia/core/lib/common/uri';
+import { FileUri } from '@theia/core/lib/node';
+import { Options } from '@theia/core/shared/@parcel/watcher';
+import { ParcelFileSystemWatcherService } from './parcel-filesystem-service';
+
+// We require the *same* module object that the production code imports from, so that
+// stubbing its `subscribe` export is observed by `ParcelWatcher`. The `@theia/core/shared`
+// shim simply re-exports `require('@parcel/watcher')`, so this is the identical reference.
+// eslint-disable-next-line @typescript-eslint/no-var-requires
+const parcel = require('@theia/core/shared/@parcel/watcher');
+
+const expect = chai.expect;
+const track = temp.track();
+
+/**
+ * Reproduces the `files.watcherExclude` / exclude leak:
+ *
+ * Excludes flow `files.watcherExclude` -> `WatchOptions.excludes`
+ * -> `disk-file-system-provider` (`{ ignored }`) -> `ParcelWatcherOptions.ignored`.
+ * However `ParcelWatcher.createWatcher()` only uses `ignored` to *filter events after they
+ * arrive* (`isIgnored`/`pushFileChange`). It never passes them to the native `@parcel/watcher`
+ * `subscribe(..., { ignore })` option, so excluded directories are STILL crawled and given
+ * inotify watches. On large workspaces this exhausts `fs.inotify.max_user_watches`
+ * ("Unable to watch for file changes in this large workspace.") even though the user
+ * configured excludes that should have pruned those directories.
+ */
+describe('parcel-filesystem-watcher exclude handling', function (): void {
+
+    this.timeout(20000);
+
+    let root: URI;
+    let service: ParcelFileSystemWatcherService;
+    let subscribeStub: sinon.SinonStub;
+    let capturedOptions: Options[];
+
+    beforeEach(() => {
+        const tempPath = temp.mkdirSync('parcel-exclude-root');
+        root = FileUri.create(fs.realpathSync(tempPath));
+        capturedOptions = [];
+        // Stub the native parcel `subscribe` so we can inspect the options Theia passes to it
+        // (and so the test does not place real OS watches).
+        subscribeStub = sinon.stub(parcel, 'subscribe').callsFake(
+            // eslint-disable-next-line @typescript-eslint/no-explicit-any
+            async (_dir: string, _cb: any, opts: Options) => {
+                capturedOptions.push(opts);
+                return { unsubscribe: async () => undefined };
+            });
+        service = new ParcelFileSystemWatcherService({ verbose: false });
+    });
+
+    afterEach(() => {
+        subscribeStub.restore();
+        service.dispose();
+        track.cleanupSync();
+    });
+
+    it('passes the configured excludes to the native parcel `ignore` option so excluded directories are not watched', async () => {
+        const excludePattern = '**/node_modules/**';
+
+        await service.watchFileChanges(0, root.toString(), { ignored: [excludePattern] });
+        // Allow ParcelWatcher.start() (stat + subscribe) to run.
+        await new Promise(resolve => setTimeout(resolve, 300));
+
+        expect(subscribeStub.called, 'native parcel subscribe should have been called').to.equal(true);
+
+        const opts = capturedOptions[0] ?? {};
+        expect(opts.ignore, 'parcel subscribe options should carry an `ignore` list built from the excludes').to.not.equal(undefined);
+        expect(opts.ignore, 'the configured exclude pattern should be passed to parcel `ignore`').to.include(excludePattern);
+    });
+
+});