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Fixes #1972

With this change:
Whenever inferFilePath is called, the setting for useRealpaths will determine whether realpath is used or not.
This does not apply to the call in onDidChangeWatchedFiles where we don't have access to settings without a bigger refactor but it doesn't seem crucial to ever realpath there (?)

I've tested this with this very handy repro, and it behaves as expected in the symlinked directory opened in the extension development host:

image

@frodi-karlsson frodi-karlsson changed the title Support realpaths with true-defaulting config Support realpaths with config Sep 1, 2025
@dbaeumer dbaeumer enabled auto-merge (squash) September 11, 2025 11:48
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@frodi-karlsson thanks for the nice work.

@vs-code-engineering vs-code-engineering bot added this to the September 2025 milestone Sep 11, 2025
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/AzurePipelines run

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Azure Pipelines successfully started running 1 pipeline(s).

@dbaeumer dbaeumer merged commit b27a65e into microsoft:main Sep 11, 2025
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@dbaeumer dbaeumer modified the milestones: September 2025, 3.20.0 Nov 10, 2025
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Parsing error: ESLint was configured to run on X However, that TSConfig does not include this file (when project opened from symlinked folder)

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