diff --git a/src/compiler/moduleNameResolver.ts b/src/compiler/moduleNameResolver.ts
index 01c325c443d77..d841fb6c44bb1 100644
--- a/src/compiler/moduleNameResolver.ts
+++ b/src/compiler/moduleNameResolver.ts
@@ -57,6 +57,7 @@ import {
     hasProperty,
     hasTrailingDirectorySeparator,
     hostGetCanonicalFileName,
+    identity,
     inferredTypesContainingFile,
     isArray,
     isDeclarationFileName,
@@ -633,11 +634,15 @@ export function resolveTypeReferenceDirective(typeReferenceDirectiveName: string
         affectingLocations: initializeResolutionField(affectingLocations),
         resolutionDiagnostics: initializeResolutionField(diagnostics),
     };
-    if (containingDirectory && cache && !cache.isReadonly) {
-        cache.getOrCreateCacheForDirectory(containingDirectory, redirectedReference).set(typeReferenceDirectiveName, /*mode*/ resolutionMode, result);
-        if (!isExternalModuleNameRelative(typeReferenceDirectiveName)) {
-            cache.getOrCreateCacheForNonRelativeName(typeReferenceDirectiveName, resolutionMode, redirectedReference).set(containingDirectory, result);
-        }
+    if (containingDirectory) {
+        setPerDirectoryAndNonRelativeNameCacheResult(
+            cache,
+            typeReferenceDirectiveName,
+            resolutionMode,
+            containingDirectory,
+            redirectedReference,
+            result,
+        );
     }
     if (traceEnabled) traceResult(result);
     return result;
@@ -843,7 +848,10 @@ export function getAutomaticTypeDirectiveNames(options: CompilerOptions, host: M
 }
 
 export interface TypeReferenceDirectiveResolutionCache extends PerDirectoryResolutionCache<ResolvedTypeReferenceDirectiveWithFailedLookupLocations>, NonRelativeNameResolutionCache<ResolvedTypeReferenceDirectiveWithFailedLookupLocations>, PackageJsonInfoCache {
-    /** @internal */ clearAllExceptPackageJsonInfoCache(): void;
+}
+
+/** @internal */
+export interface TypeReferenceDirectiveResolutionCache extends ModuleOrTypeReferenceResolutionCache<ResolvedTypeReferenceDirectiveWithFailedLookupLocations> {
 }
 
 export interface ModeAwareCache<T> {
@@ -881,19 +889,23 @@ export interface NonRelativeNameResolutionCache<T> {
      *  This updates the redirects map as well if needed so module resolutions are cached if they can across the projects
      */
     update(options: CompilerOptions): void;
+    /** @internal */ moduleNameToDirectoryMap: CacheWithRedirects<ModeAwareCacheKey, PerNonRelativeNameCache<T>>;
     /** @internal */ isReadonly?: boolean;
 }
 
 export interface PerNonRelativeNameCache<T> {
     get(directory: string): T | undefined;
     set(directory: string, result: T): void;
+    /** @inernal */ directoryPathMap: Map<Path, T>;
     /** @internal */ isReadonly?: boolean;
 }
 
 export interface ModuleResolutionCache extends PerDirectoryResolutionCache<ResolvedModuleWithFailedLookupLocations>, NonRelativeModuleNameResolutionCache, PackageJsonInfoCache {
     getPackageJsonInfoCache(): PackageJsonInfoCache;
-    /** @internal */ clearAllExceptPackageJsonInfoCache(): void;
-    /** @internal */ optionsToRedirectsKey: Map<CompilerOptions, RedirectsCacheKey>;
+}
+
+/** @internal */
+export interface ModuleResolutionCache extends ModuleOrTypeReferenceResolutionCache<ResolvedModuleWithFailedLookupLocations> {
 }
 
 /**
@@ -962,6 +974,7 @@ export interface CacheWithRedirects<K, V> {
     update(newOptions: CompilerOptions): void;
     clear(): void;
     getOwnMap(): Map<K, V>;
+    redirectsKeyToMap: Map<RedirectsCacheKey, Map<K, V>>;
 }
 
 /** @internal */
@@ -978,6 +991,7 @@ function createCacheWithRedirects<K, V>(ownOptions: CompilerOptions | undefined,
         update,
         clear,
         getOwnMap: () => ownMap,
+        redirectsKeyToMap,
     };
 
     function getMapOfCacheRedirects(redirectedReference: ResolvedProjectReference | undefined): Map<K, V> | undefined {
@@ -1073,6 +1087,7 @@ function createPerDirectoryResolutionCache<T>(
     getCanonicalFileName: GetCanonicalFileName,
     options: CompilerOptions | undefined,
     optionsToRedirectsKey: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution: (resolution: T | undefined) => T | undefined,
 ): PerDirectoryResolutionCache<T> {
     const directoryToModuleNameMap = createCacheWithRedirects<Path, ModeAwareCache<T>>(options, optionsToRedirectsKey);
     return {
@@ -1098,7 +1113,7 @@ function createPerDirectoryResolutionCache<T>(
 
     function getFromDirectoryCache(name: string, mode: ResolutionMode, directoryName: string, redirectedReference: ResolvedProjectReference | undefined) {
         const path = toPath(directoryName, currentDirectory, getCanonicalFileName);
-        return directoryToModuleNameMap.getMapOfCacheRedirects(redirectedReference)?.get(path)?.get(name, mode);
+        return getValidResolution(directoryToModuleNameMap.getMapOfCacheRedirects(redirectedReference)?.get(path)?.get(name, mode));
     }
 }
 
@@ -1162,6 +1177,7 @@ function createNonRelativeNameResolutionCache<T>(
     options: CompilerOptions | undefined,
     getResolvedFileName: (result: T) => string | undefined,
     optionsToRedirectsKey: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution: (resolution: T | undefined) => T | undefined,
 ): NonRelativeNameResolutionCache<T> {
     const moduleNameToDirectoryMap = createCacheWithRedirects<ModeAwareCacheKey, PerNonRelativeNameCache<T>>(options, optionsToRedirectsKey);
     return {
@@ -1169,6 +1185,7 @@ function createNonRelativeNameResolutionCache<T>(
         getOrCreateCacheForNonRelativeName,
         clear,
         update,
+        moduleNameToDirectoryMap,
     };
 
     function clear() {
@@ -1181,21 +1198,32 @@ function createNonRelativeNameResolutionCache<T>(
 
     function getFromNonRelativeNameCache(nonRelativeModuleName: string, mode: ResolutionMode, directoryName: string, redirectedReference?: ResolvedProjectReference): T | undefined {
         Debug.assert(!isExternalModuleNameRelative(nonRelativeModuleName));
-        return moduleNameToDirectoryMap.getMapOfCacheRedirects(redirectedReference)?.get(createModeAwareCacheKey(nonRelativeModuleName, mode))?.get(directoryName);
+        return moduleNameToDirectoryMap.getMapOfCacheRedirects(redirectedReference)?.get(
+            createModeAwareCacheKey(nonRelativeModuleName, mode),
+        )?.get(directoryName);
     }
 
     function getOrCreateCacheForNonRelativeName(nonRelativeModuleName: string, mode: ResolutionMode, redirectedReference?: ResolvedProjectReference): PerNonRelativeNameCache<T> {
         Debug.assert(!isExternalModuleNameRelative(nonRelativeModuleName));
-        return getOrCreateCache(moduleNameToDirectoryMap, redirectedReference, createModeAwareCacheKey(nonRelativeModuleName, mode), createPerModuleNameCache);
+        return getOrCreateCache(
+            moduleNameToDirectoryMap,
+            redirectedReference,
+            createModeAwareCacheKey(nonRelativeModuleName, mode),
+            createPerModuleNameCache,
+        );
     }
 
     function createPerModuleNameCache(): PerNonRelativeNameCache<T> {
         const directoryPathMap = new Map<Path, T>();
 
-        return { get, set };
+        return { get, set, directoryPathMap };
 
         function get(directory: string): T | undefined {
-            return directoryPathMap.get(toPath(directory, currentDirectory, getCanonicalFileName));
+            return getByPath(toPath(directory, currentDirectory, getCanonicalFileName));
+        }
+
+        function getByPath(directoryPath: Path): T | undefined {
+            return getValidResolution(directoryPathMap.get(directoryPath));
         }
 
         /**
@@ -1212,32 +1240,45 @@ function createNonRelativeNameResolutionCache<T>(
         function set(directory: string, result: T): void {
             const path = toPath(directory, currentDirectory, getCanonicalFileName);
             // if entry is already in cache do nothing
-            if (directoryPathMap.has(path)) {
+            if (getByPath(path)) {
                 return;
             }
+
+            const existing = directoryPathMap.get(path);
+            // Remove invalidated result from parent
+            if (existing) {
+                const existingCommonPrefix = getCommonPrefix(path, existing);
+                withCommonPrefix(path, existingCommonPrefix, parent => directoryPathMap.delete(parent));
+            }
+
             directoryPathMap.set(path, result);
 
-            const resolvedFileName = getResolvedFileName(result);
             // find common prefix between directory and resolved file name
             // this common prefix should be the shortest path that has the same resolution
             // directory: /a/b/c/d/e
             // resolvedFileName: /a/b/foo.d.ts
             // commonPrefix: /a/b
             // for failed lookups cache the result for every directory up to root
-            const commonPrefix = resolvedFileName && getCommonPrefix(path, resolvedFileName);
+            const commonPrefix = getCommonPrefix(path, result);
+            withCommonPrefix(path, commonPrefix, parent => directoryPathMap.set(parent, result));
+        }
+
+        function withCommonPrefix(path: Path, commonPrefix: Path | undefined, action: (parent: Path) => void) {
             let current = path;
             while (current !== commonPrefix) {
                 const parent = getDirectoryPath(current);
-                if (parent === current || directoryPathMap.has(parent)) {
+                if (parent === current || getByPath(parent)) {
                     break;
                 }
-                directoryPathMap.set(parent, result);
+                action(parent);
                 current = parent;
             }
         }
 
-        function getCommonPrefix(directory: Path, resolution: string) {
-            const resolutionDirectory = toPath(getDirectoryPath(resolution), currentDirectory, getCanonicalFileName);
+        function getCommonPrefix(directory: Path, resolution: T) {
+            const resolvedFileName = getResolvedFileName(resolution);
+            if (!resolvedFileName) return undefined;
+            const resolutionDirectory = toPath(getDirectoryPath(resolvedFileName), currentDirectory, getCanonicalFileName);
 
             // find first position where directory and resolution differs
             let i = 0;
@@ -1256,12 +1297,13 @@ function createNonRelativeNameResolutionCache<T>(
             if (sep === -1) {
                 return undefined;
             }
-            return directory.substr(0, Math.max(sep, rootLength));
+            return directory.substr(0, Math.max(sep, rootLength)) as Path;
         }
     }
 }
 
-interface ModuleOrTypeReferenceResolutionCache<T> extends PerDirectoryResolutionCache<T>, NonRelativeNameResolutionCache<T>, PackageJsonInfoCache {
+/** @internal */
+export interface ModuleOrTypeReferenceResolutionCache<T> extends PerDirectoryResolutionCache<T>, NonRelativeNameResolutionCache<T>, PackageJsonInfoCache {
     getPackageJsonInfoCache(): PackageJsonInfoCache;
     clearAllExceptPackageJsonInfoCache(): void;
     optionsToRedirectsKey: Map<CompilerOptions, RedirectsCacheKey>;
@@ -1273,13 +1315,16 @@ function createModuleOrTypeReferenceResolutionCache<T>(
     packageJsonInfoCache: PackageJsonInfoCache | undefined,
     getResolvedFileName: (result: T) => string | undefined,
     optionsToRedirectsKey: Map<CompilerOptions, RedirectsCacheKey> | undefined,
+    getValidResolution: ((resolution: T | undefined) => T | undefined) | undefined,
 ): ModuleOrTypeReferenceResolutionCache<T> {
     optionsToRedirectsKey ??= new Map();
+    getValidResolution ??= identity;
     const perDirectoryResolutionCache = createPerDirectoryResolutionCache<T>(
         currentDirectory,
         getCanonicalFileName,
         options,
         optionsToRedirectsKey,
+        getValidResolution,
     );
     const nonRelativeNameResolutionCache = createNonRelativeNameResolutionCache(
         currentDirectory,
@@ -1287,6 +1332,7 @@ function createModuleOrTypeReferenceResolutionCache<T>(
         options,
         getResolvedFileName,
         optionsToRedirectsKey,
+        getValidResolution,
     );
     packageJsonInfoCache ??= createPackageJsonInfoCache(currentDirectory, getCanonicalFileName);
 
@@ -1317,6 +1363,24 @@ function createModuleOrTypeReferenceResolutionCache<T>(
     }
 }
 
+/** @internal */
+export function setPerDirectoryAndNonRelativeNameCacheResult<T>(
+    cache: ModuleOrTypeReferenceResolutionCache<T> | undefined,
+    name: string,
+    mode: ResolutionMode,
+    directoryName: string,
+    redirectedReference: ResolvedProjectReference | undefined,
+    result: T,
+) {
+    if (cache && !cache.isReadonly) {
+        cache.getOrCreateCacheForDirectory(directoryName, redirectedReference).set(name, mode, result);
+        if (!isExternalModuleNameRelative(name)) {
+            // put result in per-module name cache
+            cache.getOrCreateCacheForNonRelativeName(name, mode, redirectedReference).set(directoryName, result);
+        }
+    }
+}
+
 export function createModuleResolutionCache(
     currentDirectory: string,
     getCanonicalFileName: (s: string) => string,
@@ -1329,7 +1393,10 @@ export function createModuleResolutionCache(
     getCanonicalFileName: (s: string) => string,
     options?: CompilerOptions,
     packageJsonInfoCache?: PackageJsonInfoCache,
-    optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>, // eslint-disable-line @typescript-eslint/unified-signatures
+    optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution?: ( // eslint-disable-line @typescript-eslint/unified-signatures
+        resolution: ResolvedModuleWithFailedLookupLocations | undefined,
+    ) => ResolvedModuleWithFailedLookupLocations | undefined,
 ): ModuleResolutionCache;
 export function createModuleResolutionCache(
     currentDirectory: string,
@@ -1337,6 +1404,7 @@ export function createModuleResolutionCache(
     options?: CompilerOptions,
     packageJsonInfoCache?: PackageJsonInfoCache,
     optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution?: (resolution: ResolvedModuleWithFailedLookupLocations | undefined) => ResolvedModuleWithFailedLookupLocations | undefined,
 ): ModuleResolutionCache {
     const result = createModuleOrTypeReferenceResolutionCache(
         currentDirectory,
@@ -1345,6 +1413,7 @@ export function createModuleResolutionCache(
         packageJsonInfoCache,
         getOriginalOrResolvedModuleFileName,
         optionsToRedirectsKey,
+        getValidResolution,
     ) as ModuleResolutionCache;
     result.getOrCreateCacheForModuleName = (nonRelativeName, mode, redirectedReference) => result.getOrCreateCacheForNonRelativeName(nonRelativeName, mode, redirectedReference);
     return result;
@@ -1362,7 +1431,10 @@ export function createTypeReferenceDirectiveResolutionCache(
     getCanonicalFileName: (s: string) => string,
     options?: CompilerOptions,
     packageJsonInfoCache?: PackageJsonInfoCache,
-    optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>, // eslint-disable-line @typescript-eslint/unified-signatures
+    optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution?: ( // eslint-disable-line @typescript-eslint/unified-signatures
+        resolution: ResolvedTypeReferenceDirectiveWithFailedLookupLocations | undefined,
+    ) => ResolvedTypeReferenceDirectiveWithFailedLookupLocations | undefined,
 ): TypeReferenceDirectiveResolutionCache;
 export function createTypeReferenceDirectiveResolutionCache(
     currentDirectory: string,
@@ -1370,6 +1442,7 @@ export function createTypeReferenceDirectiveResolutionCache(
     options?: CompilerOptions,
     packageJsonInfoCache?: PackageJsonInfoCache,
     optionsToRedirectsKey?: Map<CompilerOptions, RedirectsCacheKey>,
+    getValidResolution?: (resolution: ResolvedTypeReferenceDirectiveWithFailedLookupLocations | undefined) => ResolvedTypeReferenceDirectiveWithFailedLookupLocations | undefined,
 ): TypeReferenceDirectiveResolutionCache {
     return createModuleOrTypeReferenceResolutionCache(
         currentDirectory,
@@ -1378,6 +1451,7 @@ export function createTypeReferenceDirectiveResolutionCache(
         packageJsonInfoCache,
         getOriginalOrResolvedTypeReferenceFileName,
         optionsToRedirectsKey,
+        getValidResolution,
     );
 }
 
@@ -1449,13 +1523,14 @@ export function resolveModuleName(moduleName: string, containingFile: string, co
                 return Debug.fail(`Unexpected moduleResolution: ${moduleResolution}`);
         }
 
-        if (cache && !cache.isReadonly) {
-            cache.getOrCreateCacheForDirectory(containingDirectory, redirectedReference).set(moduleName, resolutionMode, result);
-            if (!isExternalModuleNameRelative(moduleName)) {
-                // put result in per-module name cache
-                cache.getOrCreateCacheForNonRelativeName(moduleName, resolutionMode, redirectedReference).set(containingDirectory, result);
-            }
-        }
+        setPerDirectoryAndNonRelativeNameCacheResult(
+            cache,
+            moduleName,
+            resolutionMode,
+            containingDirectory,
+            redirectedReference,
+            result,
+        );
     }
 
     if (traceEnabled) {
diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index a4bb05b3f78fd..cd59eaaf489d7 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -275,7 +275,6 @@ import {
     removeSuffix,
     resolutionExtensionIsTSOrJson,
     ResolutionMode,
-    ResolutionWithFailedLookupLocations,
     resolveConfigFileProjectName,
     ResolvedConfigFileName,
     ResolvedModuleFull,
@@ -1968,6 +1967,7 @@ export function createProgram(rootNamesOrOptions: readonly string[] | CreateProg
         getResolvedProjectReferenceByPath,
         forEachResolvedProjectReference,
         isSourceOfProjectReferenceRedirect,
+        getRedirectReferenceForResolution,
         getRedirectReferenceForResolutionFromSourceOfProject,
         emitBuildInfo,
         fileExists,
@@ -4156,7 +4156,7 @@ export function createProgram(rootNamesOrOptions: readonly string[] | CreateProg
                 resolveModuleNamesReusingOldState(moduleNames, file);
             Debug.assert(resolutions.length === moduleNames.length);
             const optionsForFile = redirectedReference?.commandLine.options || options;
-            const resolutionsInFile = createModeAwareCache<ResolutionWithFailedLookupLocations>();
+            const resolutionsInFile = createModeAwareCache<ResolvedModuleWithFailedLookupLocations>();
             (resolvedModules ??= new Map()).set(file.path, resolutionsInFile);
             for (let index = 0; index < moduleNames.length; index++) {
                 const resolution = resolutions[index].resolvedModule;
diff --git a/src/compiler/resolutionCache.ts b/src/compiler/resolutionCache.ts
index 495e1bd43240a..9f743da2f41db 100644
--- a/src/compiler/resolutionCache.ts
+++ b/src/compiler/resolutionCache.ts
@@ -3,7 +3,6 @@ import {
     clearMap,
     closeFileWatcher,
     closeFileWatcherOf,
-    CompilerHostSupportingResolutionCache,
     CompilerOptions,
     createModeAwareCache,
     createModuleResolutionCache,
@@ -47,6 +46,7 @@ import {
     memoize,
     MinimalResolutionCacheHost,
     ModeAwareCache,
+    ModuleOrTypeReferenceResolutionCache,
     ModuleResolutionCache,
     moduleResolutionNameAndModeGetter,
     mutateMap,
@@ -99,80 +99,7 @@ export type CallbackOnNewResolution<T extends ResolutionWithFailedLookupLocation
  *
  * @internal
  */
-export interface ResolutionCache extends Required<CompilerHostSupportingResolutionCache> {
-    rootDirForResolution: string;
-    resolvedModuleNames: Map<Path, ModeAwareCache<CachedResolvedModuleWithFailedLookupLocations>>;
-    resolvedTypeReferenceDirectives: Map<Path, ModeAwareCache<CachedResolvedTypeReferenceDirectiveWithFailedLookupLocations>>;
-    resolvedLibraries: Map<string, CachedResolvedModuleWithFailedLookupLocations>;
-    resolvedFileToResolution: Map<Path, Set<ResolutionWithFailedLookupLocations>>;
-    resolutionsWithFailedLookups: Set<ResolutionWithFailedLookupLocations>;
-    resolutionsWithOnlyAffectingLocations: Set<ResolutionWithFailedLookupLocations>;
-    directoryWatchesOfFailedLookups: Map<string, DirectoryWatchesOfFailedLookup>;
-    fileWatchesOfAffectingLocations: Map<string, FileWatcherOfAffectingLocation>;
-    packageDirWatchers: Map<Path, PackageDirWatcher>;
-    dirPathToSymlinkPackageRefCount: Map<Path, number>;
-    countResolutionsResolvedWithGlobalCache(): number;
-    countResolutionsResolvedWithoutGlobalCache(): number;
-
-    watchResolution<T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName>(
-        resolution: T,
-        filePath: Path,
-        getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>,
-    ): void;
-
-    resolveModuleNameLiterals(
-        moduleLiterals: readonly StringLiteralLike[],
-        containingFile: string,
-        redirectedReference: ResolvedProjectReference | undefined,
-        options: CompilerOptions,
-        containingSourceFile: SourceFile,
-        reusedNames: readonly StringLiteralLike[] | undefined,
-        ambientModuleNames: readonly StringLiteralLike[] | undefined,
-        onNewResolution?: CallbackOnNewResolution<ResolvedModuleWithFailedLookupLocations>,
-    ): readonly ResolvedModuleWithFailedLookupLocations[];
-    resolveTypeReferenceDirectiveReferences<T extends FileReference | string>(
-        typeDirectiveReferences: readonly T[],
-        containingFile: string,
-        redirectedReference: ResolvedProjectReference | undefined,
-        options: CompilerOptions,
-        containingSourceFile: SourceFile | undefined,
-        reusedNames: readonly T[] | undefined,
-    ): readonly ResolvedTypeReferenceDirectiveWithFailedLookupLocations[];
-    resolveLibrary(
-        libraryName: string,
-        resolveFrom: string,
-        options: CompilerOptions,
-        libFileName: string,
-    ): ResolvedModuleWithFailedLookupLocations;
-    resolveSingleModuleNameWithoutWatching(
-        moduleName: string,
-        containingFile: string,
-    ): ResolvedModuleWithFailedLookupLocations;
-
-    invalidateResolutionsOfFailedLookupLocations(): boolean;
-    invalidateResolutionsWithGlobalCachePass(): void;
-    invalidateResolutionsWithoutGlobalCachePass(): void;
-    invalidateUnresolvedResolutionsWithGlobalCachePass(): void;
-    invalidateResolutionOfFile(filePath: Path): void;
-    removeResolutionsOfFile(filePath: Path): void;
-    removeResolutionsFromProjectReferenceRedirects(filePath: Path): void;
-    createHasInvalidatedResolutions(
-        customHasInvalidatedResolutions: HasInvalidatedResolutions,
-        customHasInvalidatedLibResolutions: HasInvalidatedLibResolutions,
-    ): HasInvalidatedFromResolutionCache;
-    hasChangedAutomaticTypeDirectiveNames(): boolean;
-
-    startCachingPerDirectoryResolution(): void;
-    finishCachingPerDirectoryResolution(newProgram: Program | undefined, oldProgram: Program | undefined): void;
-
-    updateTypeRootsWatch(): void;
-    closeTypeRootsWatch(): void;
-
-    getModuleResolutionCache(): ModuleResolutionCache;
-
-    clear(): void;
-    onChangesAffectModuleResolution(): void;
-}
+export type ResolutionCache = ReturnType<typeof createResolutionCache>;
 
 /** @internal */
 export interface ResolutionWithFailedLookupLocations {
@@ -188,12 +115,13 @@ export interface ResolutionWithFailedLookupLocations {
     globalCacheResolution?: boolean;
 }
 
-/** @internal */
-export interface CachedResolvedModuleWithFailedLookupLocations extends ResolvedModuleWithFailedLookupLocations, ResolutionWithFailedLookupLocations {
-}
-
-/** @internal */
-export interface CachedResolvedTypeReferenceDirectiveWithFailedLookupLocations extends ResolvedTypeReferenceDirectiveWithFailedLookupLocations, ResolutionWithFailedLookupLocations {
+declare module "./types.js" {
+    /** @internal */
+    export interface ResolvedModuleWithFailedLookupLocations extends ResolutionWithFailedLookupLocations {
+    }
+    /** @internal */
+    export interface ResolvedTypeReferenceDirectiveWithFailedLookupLocations extends ResolutionWithFailedLookupLocations {
+    }
 }
 
 /** @internal */
@@ -597,11 +525,16 @@ function resolveModuleNameUsingGlobalCache(
 /** @internal */
 export type GetResolutionWithResolvedFileName<T extends ResolutionWithFailedLookupLocations = ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName = ResolutionWithResolvedFileName> = (resolution: T) => R | undefined;
 
+function getModuleOrTypeRefResolved(resolution: ResolutionWithFailedLookupLocations) {
+    return (resolution as ResolvedModuleWithFailedLookupLocations).resolvedModule ??
+        (resolution as ResolvedTypeReferenceDirectiveWithFailedLookupLocations).resolvedTypeReferenceDirective;
+}
+
 /** @internal */
 export function createResolutionCache(
     resolutionHost: ResolutionCacheHost,
     rootDirForResolution: string,
-): ResolutionCache {
+) {
     let filesWithInvalidatedResolutions: Set<Path> | undefined;
 
     const resolutionsWithFailedLookups = new Set<ResolutionWithFailedLookupLocations>();
@@ -620,34 +553,44 @@ export function createResolutionCache(
     let resolutionsWithoutGlobalCachePassAreInvalidated = false;
     let unresolvedResolutionsWithGlobalCachePassAreInvalidated = false;
 
+    let potentiallyUnreferencedResolutions: Map<ModuleOrTypeReferenceResolutionCache<ResolutionWithFailedLookupLocations>, Set<ResolutionWithFailedLookupLocations>> | undefined;
+    let potentiallyUnreferencedDirWatchers: Set<Path> | undefined;
+    let newUnresolvedResolutionCachePassResolutions: Set<ResolutionWithFailedLookupLocations> | undefined;
+
     const getCurrentDirectory = memoize(() => resolutionHost.getCurrentDirectory!());
     const cachedDirectoryStructureHost = resolutionHost.getCachedDirectoryStructureHost();
 
     // The resolvedModuleNames and resolvedTypeReferenceDirectives are the cache of resolutions per file.
     // The key in the map is source file's path.
     // The values are Map of resolutions with key being name lookedup.
-    const resolvedModuleNames = new Map<Path, ModeAwareCache<CachedResolvedModuleWithFailedLookupLocations>>();
+    const resolvedModuleNames = new Map<Path, ModeAwareCache<ResolvedModuleWithFailedLookupLocations>>();
     const moduleResolutionCache = createModuleResolutionCache(
         getCurrentDirectory(),
         resolutionHost.getCanonicalFileName,
         resolutionHost.getCompilationSettings(),
+        /*packageJsonInfoCache*/ undefined,
+        /*optionsToRedirectsKey*/ undefined,
+        getValidResolution,
     );
 
-    const resolvedTypeReferenceDirectives = new Map<Path, ModeAwareCache<CachedResolvedTypeReferenceDirectiveWithFailedLookupLocations>>();
+    const resolvedTypeReferenceDirectives = new Map<Path, ModeAwareCache<ResolvedTypeReferenceDirectiveWithFailedLookupLocations>>();
     const typeReferenceDirectiveResolutionCache = createTypeReferenceDirectiveResolutionCache(
         getCurrentDirectory(),
         resolutionHost.getCanonicalFileName,
         resolutionHost.getCompilationSettings(),
         moduleResolutionCache.getPackageJsonInfoCache(),
         moduleResolutionCache.optionsToRedirectsKey,
+        getValidResolution,
     );
 
-    const resolvedLibraries = new Map<string, CachedResolvedModuleWithFailedLookupLocations>();
+    const resolvedLibraries = new Map<string, ResolvedModuleWithFailedLookupLocations>();
     const libraryResolutionCache = createModuleResolutionCache(
         getCurrentDirectory(),
         resolutionHost.getCanonicalFileName,
         getOptionsForLibraryResolution(resolutionHost.getCompilationSettings()),
         moduleResolutionCache.getPackageJsonInfoCache(),
+        /*optionsToRedirectsKey*/ undefined,
+        getValidResolution,
     );
 
     let resolutionsResolvedWithGlobalCache = 0;
@@ -671,6 +614,9 @@ export function createResolutionCache(
         resolvedModuleNames,
         resolvedTypeReferenceDirectives,
         resolvedLibraries,
+        moduleResolutionCache,
+        typeReferenceDirectiveResolutionCache,
+        libraryResolutionCache,
         resolvedFileToResolution,
         resolutionsWithFailedLookups,
         resolutionsWithOnlyAffectingLocations,
@@ -681,7 +627,6 @@ export function createResolutionCache(
         countResolutionsResolvedWithGlobalCache: () => resolutionsResolvedWithGlobalCache,
         countResolutionsResolvedWithoutGlobalCache: () => resolutionsResolvedWithoutGlobalCache,
         watchResolution,
-        getModuleResolutionCache: () => moduleResolutionCache,
         // perDirectoryResolvedModuleNames and perDirectoryResolvedTypeReferenceDirectives could be non empty if there was exception during program update
         // (between startCachingPerDirectoryResolution and finishCachingPerDirectoryResolution)
         startCachingPerDirectoryResolution,
@@ -708,6 +653,9 @@ export function createResolutionCache(
     };
 
     function clear() {
+        potentiallyUnreferencedResolutions = undefined;
+        potentiallyUnreferencedDirWatchers = undefined;
+        newUnresolvedResolutionCachePassResolutions = undefined;
         clearMap(directoryWatchesOfFailedLookups, closeFileWatcherOf);
         clearMap(fileWatchesOfAffectingLocations, closeFileWatcherOf);
         isSymlinkCache.clear();
@@ -742,6 +690,8 @@ export function createResolutionCache(
 
     function onChangesAffectModuleResolution() {
         allModuleAndTypeResolutionsAreInvalidated = true;
+        // TODO: (sheetal) Here we want to update own options and retain existing resolutions as is
+        // We will reuse those resolutions where we can and then do cleanup of resolutions that are no longer needed
         moduleResolutionCache.clearAllExceptPackageJsonInfoCache();
         typeReferenceDirectiveResolutionCache.clearAllExceptPackageJsonInfoCache();
         moduleResolutionCache.update(resolutionHost.getCompilationSettings());
@@ -775,9 +725,6 @@ export function createResolutionCache(
         typeReferenceDirectiveResolutionCache.isReadonly = undefined;
         libraryResolutionCache.isReadonly = undefined;
         moduleResolutionCache.getPackageJsonInfoCache().isReadonly = undefined;
-        moduleResolutionCache.clearAllExceptPackageJsonInfoCache();
-        typeReferenceDirectiveResolutionCache.clearAllExceptPackageJsonInfoCache();
-        libraryResolutionCache.clearAllExceptPackageJsonInfoCache();
         isSymlinkCache.clear();
     }
 
@@ -787,7 +734,7 @@ export function createResolutionCache(
                 stopWatchFailedLookupLocationOfResolution(
                     resolution,
                     resolutionHost.toPath(getInferredLibraryNameResolveFrom(resolutionHost.getCompilationSettings(), getCurrentDirectory(), libFileName)),
-                    getResolvedModuleFromResolution,
+                    libraryResolutionCache,
                 );
                 resolvedLibraries.delete(libFileName);
             }
@@ -799,8 +746,15 @@ export function createResolutionCache(
         resolutionsWithGlobalCachePassAreInvalidated = false;
         resolutionsWithoutGlobalCachePassAreInvalidated = false;
         unresolvedResolutionsWithGlobalCachePassAreInvalidated = false;
+        newUnresolvedResolutionCachePassResolutions = undefined;
+        let potentiallyUnReferencedFileWatcherOfAffectingLocation: Map<string, FileWatcherOfAffectingLocation> | undefined;
         // Update file watches
         if (newProgram !== oldProgram) {
+            const releaseFileWatcherOfAffectingLocation = (location: string) => {
+                const watcher = fileWatchesOfAffectingLocations.get(location)!;
+                watcher.files--;
+                (potentiallyUnReferencedFileWatcherOfAffectingLocation ??= new Map()).set(location, watcher);
+            };
             cleanupLibResolutionWatching(newProgram);
             newProgram?.getSourceFiles().forEach(newFile => {
                 const expected = isExternalOrCommonJsModule(newFile) ? newFile.packageJsonLocations?.length ?? 0 : 0;
@@ -810,7 +764,7 @@ export function createResolutionCache(
                 }
                 if (existing.length > expected) {
                     for (let i = expected; i < existing.length; i++) {
-                        fileWatchesOfAffectingLocations.get(existing[i])!.files--;
+                        releaseFileWatcherOfAffectingLocation(existing[i]);
                     }
                 }
                 if (expected) impliedFormatPackageJsons.set(newFile.resolvedPath, newFile.packageJsonLocations!);
@@ -819,14 +773,23 @@ export function createResolutionCache(
             impliedFormatPackageJsons.forEach((existing, path) => {
                 const newFile = newProgram?.getSourceFileByPath(path);
                 if (!newFile || newFile.resolvedPath !== path) {
-                    existing.forEach(location => fileWatchesOfAffectingLocations.get(location)!.files--);
+                    existing.forEach(releaseFileWatcherOfAffectingLocation);
                     impliedFormatPackageJsons.delete(path);
                 }
             });
         }
-        directoryWatchesOfFailedLookups.forEach(closeDirectoryWatchesOfFailedLookup);
-        fileWatchesOfAffectingLocations.forEach(closeFileWatcherOfAffectingLocation);
-        packageDirWatchers.forEach(closePackageDirWatcher);
+        potentiallyUnReferencedFileWatcherOfAffectingLocation?.forEach(closeFileWatcherOfAffectingLocation);
+        potentiallyUnReferencedFileWatcherOfAffectingLocation = undefined;
+        // These are only dir watchers that were potentially removed because packageDir symlink status changed while watching resolutions
+        potentiallyUnreferencedDirWatchers?.forEach(path =>
+            closeDirectoryWatchesOfFailedLookup(
+                directoryWatchesOfFailedLookups.get(path)!,
+                path,
+            )
+        );
+        potentiallyUnreferencedDirWatchers = undefined;
+        potentiallyUnreferencedResolutions?.forEach(gcModuleOrTypeRefCache);
+        potentiallyUnreferencedResolutions = undefined;
         hasChangedAutomaticTypeDirectiveNames = false;
         moduleResolutionCache.isReadonly = true;
         typeReferenceDirectiveResolutionCache.isReadonly = true;
@@ -835,6 +798,37 @@ export function createResolutionCache(
         isSymlinkCache.clear();
     }
 
+    function gcModuleOrTypeRefCache(
+        setOfResolutions: Set<ResolutionWithFailedLookupLocations>,
+        cache: ModuleOrTypeReferenceResolutionCache<ResolutionWithFailedLookupLocations>,
+    ) {
+        let needsGc = false;
+        setOfResolutions.forEach(resolution => {
+            if (resolution.files!.size) return;
+            needsGc = true;
+            releaseResolution(resolution);
+        });
+        if (needsGc) {
+            // TODO:: sheetal
+            // Iterate through maps to remove things that have 0 refCount
+
+            // TODO: sheetal working on  how to gc moduleOrTypeRef cache:
+            // | --- a --- file.ts
+            // | -- b.ts
+            // | -- c -- another.ts
+
+            // When we remove for file: a/File.ts
+            // -- do we remove resolutions in directory a?
+            // -- if yes = we need to update failed lookups and affecting locations - too compicated ?
+            // I htink we shouldnt remove from directory a till resolution ref reaches 0 as we would be anyways watching these resolutions
+            // - but that means we have to scan the whole directory to gc ??
+            // How do we verify incrementally then? - should we only check that they are correct from expected to resolution
+            // And check that non of the other ones in the actual cache are invalidated or 0 ref?
+            // Also this makes it difficult because resolution needs to have name and mode as well
+            // Should we jsut store it on "ResolutionWihtFailedLookups" and verify it matches or do we build set and release with that data as function - may be later is better
+        }
+    }
+
     function closePackageDirWatcher(watcher: PackageDirWatcher, packageDirPath: Path) {
         if (watcher.dirPathToWatcher.size === 0) {
             packageDirWatchers.delete(packageDirPath);
@@ -855,11 +849,22 @@ export function createResolutionCache(
         }
     }
 
-    function isResolutionInvalidatedPerGlobalCacheOptions(resolution: ResolutionWithFailedLookupLocations) {
-        if (resolutionsWithGlobalCachePassAreInvalidated && resolution.globalCacheResolution) return true;
-        if (resolutionsWithoutGlobalCachePassAreInvalidated && resolution.globalCacheResolution === false) return true;
-        if (unresolvedResolutionsWithGlobalCachePassAreInvalidated && resolution.globalCacheResolution && isUnresolvedOrResolvedToJs(resolution as ResolvedModuleWithFailedLookupLocations)) return true;
-        return false;
+    function getValidResolution<T extends ResolutionWithFailedLookupLocations>(resolution: T | undefined) {
+        return isInvalidatedResolution(resolution) ? undefined : resolution;
+    }
+
+    function isInvalidatedResolution(resolution: ResolutionWithFailedLookupLocations | undefined) {
+        // TODO:: sheetal - waht about refcount = 0
+        return !resolution ||
+            resolution.isInvalidated ||
+            (resolutionsWithGlobalCachePassAreInvalidated && resolution.globalCacheResolution) ||
+            (resolutionsWithoutGlobalCachePassAreInvalidated && resolution.globalCacheResolution === false) ||
+            // If this is not a new resolution and its unresolved, its invalid
+            (!newUnresolvedResolutionCachePassResolutions?.has(resolution) && isInvalidatedUnResolvedGlobalCachePassResolution(resolution));
+    }
+
+    function isInvalidatedUnResolvedGlobalCachePassResolution(resolution: ResolutionWithFailedLookupLocations) {
+        return (unresolvedResolutionsWithGlobalCachePassAreInvalidated && resolution.globalCacheResolution && isUnresolvedOrResolvedToJs(resolution as ResolvedModuleWithFailedLookupLocations));
     }
 
     interface ResolveNamesWithLocalCacheInput<Entry, SourceFile, T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName> {
@@ -871,6 +876,7 @@ export function createResolutionCache(
         reusedNames?: readonly Entry[];
         ambientEntries?: readonly Entry[];
         perFileCache: Map<Path, ModeAwareCache<T>>;
+        moduleOrTypeRefCache: ModuleOrTypeReferenceResolutionCache<T>;
         loader: ResolutionLoader<Entry, T, SourceFile>;
         getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>;
         onNewResolution?: CallbackOnNewResolution<T>;
@@ -882,6 +888,7 @@ export function createResolutionCache(
         redirectedReference,
         options,
         perFileCache,
+        moduleOrTypeRefCache,
         reusedNames,
         ambientEntries,
         loader,
@@ -910,9 +917,7 @@ export function createResolutionCache(
                 (
                     allModuleAndTypeResolutionsAreInvalidated ||
                     unmatchedRedirects ||
-                    !resolution ||
-                    resolution.isInvalidated ||
-                    isResolutionInvalidatedPerGlobalCacheOptions(resolution)
+                    isInvalidatedResolution(resolution)
                 )
             ) {
                 const existingResolution = resolution;
@@ -924,9 +929,13 @@ export function createResolutionCache(
                 if (resolution !== existingResolution) {
                     watchResolution(resolution, path, getResolutionWithResolvedFileName);
                     if (existingResolution) {
-                        stopWatchFailedLookupLocationOfResolution(existingResolution, path, getResolutionWithResolvedFileName);
+                        stopWatchFailedLookupLocationOfResolution(existingResolution, path, moduleOrTypeRefCache);
                     }
                 }
+                // Store new resolutions that are unresolved during global cache pass so we dont see them as invalidated and calculate resolution again
+                if (isInvalidatedUnResolvedGlobalCachePassResolution(resolution)) {
+                    (newUnresolvedResolutionCachePassResolutions ??= new Set()).add(resolution);
+                }
                 onNewResolution?.(existingResolution, resolution, path, name, mode);
             }
             else {
@@ -967,12 +976,12 @@ export function createResolutionCache(
             resolutionsInFile,
             seenNamesInFile,
             nameAndModeGetter: loader.nameAndMode,
-            getResolutionWithResolvedFileName,
+            moduleOrTypeRefCache,
         });
         return resolvedModules;
     }
 
-    interface OnReusedResolutionsInput<Entry, SourceFile, T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName> {
+    interface OnReusedResolutionsInput<Entry, SourceFile, T extends ResolutionWithFailedLookupLocations> {
         reusedNames: readonly Entry[] | undefined;
         containingSourceFile: SourceFile;
         redirectedReference: ResolvedProjectReference | undefined;
@@ -982,9 +991,9 @@ export function createResolutionCache(
         resolutionsInFile: ModeAwareCache<T> | undefined;
         seenNamesInFile?: ModeAwareCache<true>;
         nameAndModeGetter: ResolutionNameAndModeGetter<Entry, SourceFile>;
-        getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>;
+        moduleOrTypeRefCache: ModuleOrTypeReferenceResolutionCache<T>;
     }
-    function onReusedResolutions<Entry, SourceFile, T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName>({
+    function onReusedResolutions<Entry, SourceFile, T extends ResolutionWithFailedLookupLocations>({
         reusedNames,
         containingSourceFile,
         redirectedReference,
@@ -993,9 +1002,9 @@ export function createResolutionCache(
         resolutionsInFile,
         seenNamesInFile,
         nameAndModeGetter,
-        getResolutionWithResolvedFileName,
         ambientEntries,
-    }: OnReusedResolutionsInput<Entry, SourceFile, T, R>) {
+        moduleOrTypeRefCache,
+    }: OnReusedResolutionsInput<Entry, SourceFile, T>) {
         if (!resolutionsInFile) return;
         if (!seenNamesInFile) seenNamesInFile = createModeAwareCache();
         reusedNames?.forEach(entry =>
@@ -1021,7 +1030,7 @@ export function createResolutionCache(
             // Stop watching and remove the unused name
             resolutionsInFile.forEach((resolution, name, mode) => {
                 if (!seenNamesInFile.has(name, mode)) {
-                    stopWatchFailedLookupLocationOfResolution(resolution, path, getResolutionWithResolvedFileName);
+                    stopWatchFailedLookupLocationOfResolution(resolution, path, moduleOrTypeRefCache);
                     resolutionsInFile.delete(name, mode);
                 }
             });
@@ -1044,7 +1053,7 @@ export function createResolutionCache(
             path: containingSourceFile.path,
             resolutionsInFile: resolvedModuleNames.get(containingSourceFile.path),
             nameAndModeGetter: moduleResolutionNameAndModeGetter,
-            getResolutionWithResolvedFileName: getResolvedModuleFromResolution,
+            moduleOrTypeRefCache: moduleResolutionCache,
         });
     }
 
@@ -1065,7 +1074,7 @@ export function createResolutionCache(
             path,
             resolutionsInFile: resolvedTypeReferenceDirectives.get(path),
             nameAndModeGetter: typeReferenceResolutionNameAndModeGetter,
-            getResolutionWithResolvedFileName: getResolvedTypeReferenceDirectiveFromResolution,
+            moduleOrTypeRefCache: typeReferenceDirectiveResolutionCache,
         });
     }
 
@@ -1085,6 +1094,7 @@ export function createResolutionCache(
             options,
             reusedNames,
             perFileCache: resolvedTypeReferenceDirectives,
+            moduleOrTypeRefCache: typeReferenceDirectiveResolutionCache,
             loader: createTypeReferenceResolutionLoader(
                 containingFile,
                 redirectedReference,
@@ -1115,6 +1125,7 @@ export function createResolutionCache(
             reusedNames,
             ambientEntries: ambientModuleNames,
             perFileCache: resolvedModuleNames,
+            moduleOrTypeRefCache: moduleResolutionCache,
             loader: createModuleResolutionLoaderUsingGlobalCache(
                 containingFile,
                 redirectedReference,
@@ -1135,19 +1146,19 @@ export function createResolutionCache(
     ) {
         const host = getModuleResolutionHost(resolutionHost);
         let resolution = resolvedLibraries?.get(libFileName);
-        if (!resolution || resolution.isInvalidated) {
+        if (isInvalidatedResolution(resolution)) {
             const existingResolution = resolution;
             resolution = ts_resolveLibrary(libraryName, resolveFrom, options, host, libraryResolutionCache);
             const path = resolutionHost.toPath(resolveFrom);
             watchResolution(resolution, path, getResolvedModuleFromResolution);
             resolvedLibraries.set(libFileName, resolution);
             if (existingResolution) {
-                stopWatchFailedLookupLocationOfResolution(existingResolution, path, getResolvedModuleFromResolution);
+                stopWatchFailedLookupLocationOfResolution(existingResolution, path, libraryResolutionCache);
             }
         }
         else {
             if (isTraceEnabled(options, host)) {
-                const resolved = getResolvedModuleFromResolution(resolution);
+                const resolved = getResolvedModuleFromResolution(resolution!);
                 trace(
                     host,
                     resolved?.resolvedFileName ?
@@ -1162,7 +1173,7 @@ export function createResolutionCache(
                 );
             }
         }
-        return resolution;
+        return resolution!;
     }
 
     function resolveSingleModuleNameWithoutWatching(moduleName: string, containingFile: string) {
@@ -1193,10 +1204,11 @@ export function createResolutionCache(
         filePath: Path,
         getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>,
     ) {
+        const firstTime = !resolution.files;
         (resolution.files ??= new Set()).add(filePath);
         watchFailedLookupLocationOfResolution(resolution);
         watchAffectingLocationsOfResolution(resolution);
-        if (resolution.files.size !== 1) return;
+        if (!firstTime) return;
         if (resolution.globalCacheResolution) resolutionsResolvedWithGlobalCache++;
         else if (resolution.globalCacheResolution === false) resolutionsResolvedWithoutGlobalCache++;
         const resolved = getResolutionWithResolvedFileName(resolution);
@@ -1362,7 +1374,7 @@ export function createResolutionCache(
             else if (packageDirWatcher.isSymlink !== isSymlink) {
                 // Handle the change
                 packageDirWatcher.dirPathToWatcher.forEach(watcher => {
-                    removeDirectoryWatcher(packageDirWatcher!.isSymlink ? packageDirPath : dirPath);
+                    removeDirectoryWatcher(packageDirWatcher!.isSymlink ? packageDirPath : dirPath, /*delayed*/ true);
                     watcher.watcher = createDirPathToWatcher();
                 });
                 packageDirWatcher.isSymlink = isSymlink;
@@ -1418,7 +1430,10 @@ export function createResolutionCache(
         return dirWatcher;
     }
 
-    function stopWatchFailedLookupLocation(failedLookupLocation: string, removeAtRoot: boolean) {
+    function stopWatchFailedLookupLocation(
+        failedLookupLocation: string,
+        removeAtRoot: boolean,
+    ) {
         const failedLookupLocationPath = resolutionHost.toPath(failedLookupLocation);
         const toWatch = getDirectoryToWatchFailedLookupLocation(
             failedLookupLocation,
@@ -1439,7 +1454,7 @@ export function createResolutionCache(
                 const forDirPath = packageDirWatcher.dirPathToWatcher.get(dirPath)!;
                 forDirPath.refCount--;
                 if (forDirPath.refCount === 0) {
-                    removeDirectoryWatcher(packageDirWatcher.isSymlink ? packageDirPath : dirPath);
+                    removeDirectoryWatcher(packageDirWatcher.isSymlink ? packageDirPath : dirPath, /*delayed*/ false);
                     packageDirWatcher.dirPathToWatcher.delete(dirPath);
                     if (packageDirWatcher.isSymlink) {
                         const refCount = dirPathToSymlinkPackageRefCount.get(dirPath)! - 1;
@@ -1450,26 +1465,36 @@ export function createResolutionCache(
                             dirPathToSymlinkPackageRefCount.set(dirPath, refCount);
                         }
                     }
+                    closePackageDirWatcher(packageDirWatcher, packageDirPath);
                 }
             }
             else {
-                removeDirectoryWatcher(dirPath);
+                removeDirectoryWatcher(dirPath, /*delayed*/ false);
             }
         }
         return removeAtRoot;
     }
 
-    function stopWatchFailedLookupLocationOfResolution<T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName>(
-        resolution: T,
+    function stopWatchFailedLookupLocationOfResolution(
+        resolution: ResolutionWithFailedLookupLocations,
         filePath: Path,
-        getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>,
+        cache: ModuleOrTypeReferenceResolutionCache<ResolutionWithFailedLookupLocations>,
     ) {
-        Debug.checkDefined(resolution.files).delete(filePath);
-        if (resolution.files!.size) return;
+        Debug.assertIsDefined(resolution.files);
+        resolution.files.delete(filePath);
+        if (resolution.files.size) return;
+        let setOfResolutions = potentiallyUnreferencedResolutions?.get(cache);
+        if (!setOfResolutions) (potentiallyUnreferencedResolutions ??= new Map()).set(cache, setOfResolutions = new Set());
+        setOfResolutions.add(resolution);
+    }
+
+    function releaseResolution(resolution: ResolutionWithFailedLookupLocations) {
         resolution.files = undefined;
+        // Even if this is in cache, we cant reuse this resolution after this since we are not watching it any more
+        resolution.isInvalidated = true;
         if (resolution.globalCacheResolution) resolutionsResolvedWithGlobalCache--;
         if (resolution.globalCacheResolution === false) resolutionsResolvedWithoutGlobalCache--;
-        const resolved = getResolutionWithResolvedFileName(resolution);
+        const resolved = getModuleOrTypeRefResolved(resolution);
         if (resolved && resolved.resolvedFileName) {
             const key = resolutionHost.toPath(resolved.resolvedFileName);
             const resolutions = resolvedFileToResolution.get(key);
@@ -1485,7 +1510,7 @@ export function createResolutionCache(
                 }
             }
             if (alternateResult) removeAtRoot = stopWatchFailedLookupLocation(alternateResult, removeAtRoot);
-            if (removeAtRoot) removeDirectoryWatcher(rootPath);
+            if (removeAtRoot) removeDirectoryWatcher(rootPath, /*delayed*/ false);
         }
         else if (affectingLocations?.length) {
             resolutionsWithOnlyAffectingLocations.delete(resolution);
@@ -1495,14 +1520,17 @@ export function createResolutionCache(
             for (const affectingLocation of affectingLocations) {
                 const watcher = fileWatchesOfAffectingLocations.get(affectingLocation)!;
                 watcher.resolutions--;
+                closeFileWatcherOfAffectingLocation(watcher, affectingLocation);
             }
         }
     }
 
-    function removeDirectoryWatcher(dirPath: Path) {
+    function removeDirectoryWatcher(dirPath: Path, delayed: boolean) {
         const dirWatcher = directoryWatchesOfFailedLookups.get(dirPath)!;
         // Do not close the watcher yet since it might be needed by other failed lookup locations.
         dirWatcher.refCount--;
+        if (!delayed) closeDirectoryWatchesOfFailedLookup(dirWatcher, dirPath);
+        else (potentiallyUnreferencedDirWatchers ??= new Set()).add(dirPath);
     }
 
     function createDirectoryWatcher(directory: string, dirPath: Path, nonRecursive: boolean | undefined) {
@@ -1517,10 +1545,10 @@ export function createResolutionCache(
         }, nonRecursive ? WatchDirectoryFlags.None : WatchDirectoryFlags.Recursive);
     }
 
-    function removeResolutionsOfFileFromCache<T extends ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName>(
+    function removeResolutionsOfFileFromCache<T extends ResolutionWithFailedLookupLocations>(
         cache: Map<string, ModeAwareCache<T>>,
         filePath: Path,
-        getResolutionWithResolvedFileName: GetResolutionWithResolvedFileName<T, R>,
+        moduleOrTypeRefCache: ModuleOrTypeReferenceResolutionCache<T>,
     ) {
         // Deleted file, stop watching failed lookups for all the resolutions in the file
         const resolutions = cache.get(filePath);
@@ -1529,7 +1557,7 @@ export function createResolutionCache(
                 stopWatchFailedLookupLocationOfResolution(
                     resolution,
                     filePath,
-                    getResolutionWithResolvedFileName,
+                    moduleOrTypeRefCache,
                 )
             );
             cache.delete(filePath);
@@ -1548,11 +1576,13 @@ export function createResolutionCache(
 
         // filePath is for the projectReference and the containing file is from this project reference, invalidate the resolution
         resolvedProjectReference.commandLine.fileNames.forEach(f => removeResolutionsOfFile(resolutionHost.toPath(f)));
+
+        // TODO: (sheetal) this is not correct as we would want to instead update to re-evaluate redirected-references
     }
 
     function removeResolutionsOfFile(filePath: Path) {
-        removeResolutionsOfFileFromCache(resolvedModuleNames, filePath, getResolvedModuleFromResolution);
-        removeResolutionsOfFileFromCache(resolvedTypeReferenceDirectives, filePath, getResolvedTypeReferenceDirectiveFromResolution);
+        removeResolutionsOfFileFromCache(resolvedModuleNames, filePath, moduleResolutionCache);
+        removeResolutionsOfFileFromCache(resolvedTypeReferenceDirectives, filePath, typeReferenceDirectiveResolutionCache);
     }
 
     function invalidateResolutions(resolutions: Set<ResolutionWithFailedLookupLocations> | Map<string, ResolutionWithFailedLookupLocations> | undefined, canInvalidate: (resolution: ResolutionWithFailedLookupLocations) => boolean | undefined) {
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index c817719e595e7..0a80fdf44eabd 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -4817,6 +4817,7 @@ export interface Program extends ScriptReferenceHost {
     getResolvedProjectReferenceToRedirect(fileName: string): ResolvedProjectReference | undefined;
     /** @internal */ forEachResolvedProjectReference<T>(cb: (resolvedProjectReference: ResolvedProjectReference) => T | undefined): T | undefined;
     /** @internal */ getResolvedProjectReferenceByPath(projectReferencePath: Path): ResolvedProjectReference | undefined;
+    /** @internal */ getRedirectReferenceForResolution(file: SourceFile): ResolvedProjectReference | undefined;
     /** @internal */ getRedirectReferenceForResolutionFromSourceOfProject(filePath: Path): ResolvedProjectReference | undefined;
     /** @internal */ isSourceOfProjectReferenceRedirect(fileName: string): boolean;
     /** @internal */ getBuildInfo?(): BuildInfo;
diff --git a/src/compiler/watchPublic.ts b/src/compiler/watchPublic.ts
index faa510118cda2..7e9f35914a992 100644
--- a/src/compiler/watchPublic.ts
+++ b/src/compiler/watchPublic.ts
@@ -538,7 +538,7 @@ export function createWatchProgram<T extends BuilderProgram>(host: WatchCompiler
         host.resolveLibrary.bind(host);
     compilerHost.getModuleResolutionCache = host.resolveModuleNameLiterals || host.resolveModuleNames ?
         maybeBind(host, host.getModuleResolutionCache) :
-        (() => resolutionCache.getModuleResolutionCache());
+        (() => resolutionCache.moduleResolutionCache);
     const userProvidedResolution = !!host.resolveModuleNameLiterals || !!host.resolveTypeReferenceDirectiveReferences ||
         !!host.resolveModuleNames || !!host.resolveTypeReferenceDirectives;
     // All resolutions are invalid if user provided resolutions and didnt supply hasInvalidatedResolutions
diff --git a/src/harness/incrementalUtils.ts b/src/harness/incrementalUtils.ts
index 5799833297519..633ca9f2c16db 100644
--- a/src/harness/incrementalUtils.ts
+++ b/src/harness/incrementalUtils.ts
@@ -210,7 +210,7 @@ export function verifyResolutionCache(
     const expected = ts.createResolutionCache(resolutionHostCacheHost, actual.rootDirForResolution);
     expected.startCachingPerDirectoryResolution();
 
-    type ExpectedResolution = ts.CachedResolvedModuleWithFailedLookupLocations & ts.CachedResolvedTypeReferenceDirectiveWithFailedLookupLocations;
+    type ExpectedResolution = ts.ResolvedModuleWithFailedLookupLocations & ts.ResolvedTypeReferenceDirectiveWithFailedLookupLocations;
 
     const expectedToResolution = new Map<ExpectedResolution, ts.ResolutionWithFailedLookupLocations>();
     const resolutionToExpected = new Map<ts.ResolutionWithFailedLookupLocations, ExpectedResolution>();
@@ -228,6 +228,8 @@ export function verifyResolutionCache(
             resolutions,
             getResolvedModuleFileName,
             expected.resolvedModuleNames,
+            expected.moduleResolutionCache,
+            () => actualProgram.getRedirectReferenceForResolution(actualProgram.getSourceFileByPath(path)!),
             (name, mode) => actualProgram.getResolvedModule(actualProgram.getSourceFileByPath(path)!, name, mode),
         )
     );
@@ -238,6 +240,11 @@ export function verifyResolutionCache(
             resolutions,
             getResolvedTypeRefFileName,
             expected.resolvedTypeReferenceDirectives,
+            expected.typeReferenceDirectiveResolutionCache,
+            () =>
+                path !== inferredTypesPath ?
+                    actualProgram.getRedirectReferenceForResolution(actualProgram.getSourceFileByPath(path)!) :
+                    undefined,
             (name, mode) =>
                 path !== inferredTypesPath ?
                     actualProgram.getResolvedTypeReferenceDirective(actualProgram.getSourceFileByPath(path)!, name, mode) :
@@ -245,17 +252,24 @@ export function verifyResolutionCache(
         )
     );
     actual.resolvedLibraries.forEach((resolved, libFileName) => {
+        const libResolvedFrom = ts.getInferredLibraryNameResolveFrom(actualProgram.getCompilerOptions(), currentDirectory, libFileName);
         const expectedResolution = collectResolution(
             "Libs",
-            resolutionHostCacheHost.toPath(
-                ts.getInferredLibraryNameResolveFrom(actualProgram.getCompilerOptions(), currentDirectory, libFileName),
-            ),
+            resolutionHostCacheHost.toPath(libResolvedFrom),
             resolved,
             getResolvedModuleFileName(resolved),
             ts.getLibraryNameFromLibFileName(libFileName),
             /*mode*/ undefined,
         );
         expected.resolvedLibraries.set(libFileName, expectedResolution);
+        ts.setPerDirectoryAndNonRelativeNameCacheResult(
+            expected.libraryResolutionCache,
+            libFileName,
+            undefined,
+            ts.getDirectoryPath(libResolvedFrom),
+            undefined,
+            expectedResolution,
+        );
     });
     // Check for resolutions in program but not in cache to empty resolutions
     if (!userResolvedModuleNames) {
@@ -337,6 +351,11 @@ export function verifyResolutionCache(
         `${projectName}:: Expected ResolutionsResolvedWithoutGlobalCache count ${expected.countResolutionsResolvedWithoutGlobalCache()} but got ${actual.countResolutionsResolvedWithoutGlobalCache()}`,
     );
 
+    // Verify that caches are same:
+    verifyModuleOrTypeResolutionCache(expected.moduleResolutionCache, actual.moduleResolutionCache, "moduleResolutionCache");
+    verifyModuleOrTypeResolutionCache(expected.typeReferenceDirectiveResolutionCache, actual.typeReferenceDirectiveResolutionCache, "typeReferenceDirectiveResolutionCache");
+    verifyModuleOrTypeResolutionCache(expected.libraryResolutionCache, actual.libraryResolutionCache, "libraryResolutionCache");
+
     // Stop watching resolutions to verify everything gets closed.
     expected.startCachingPerDirectoryResolution();
     actual.resolvedModuleNames.forEach((_resolutions, path) => expected.removeResolutionsOfFile(path));
@@ -353,6 +372,9 @@ export function verifyResolutionCache(
     ts.Debug.assert(expected.fileWatchesOfAffectingLocations.size === 0, `${projectName}:: fileWatchesOfAffectingLocations should be released`);
     ts.Debug.assert(expected.countResolutionsResolvedWithGlobalCache() === 0, `${projectName}:: ResolutionsResolvedWithGlobalCache should be cleared`);
     ts.Debug.assert(expected.countResolutionsResolvedWithoutGlobalCache() === 0, `${projectName}:: ResolutionsResolvedWithoutGlobalCache should be cleared`);
+    verifyModuleOrTypeResolutionCacheIsEmpty(expected.moduleResolutionCache, "moduleResolutionCache");
+    verifyModuleOrTypeResolutionCacheIsEmpty(expected.typeReferenceDirectiveResolutionCache, "typeReferenceDirectiveResolutionCache");
+    verifyModuleOrTypeResolutionCacheIsEmpty(expected.libraryResolutionCache, "libraryResolutionCache");
 
     function verifyResolutionIsInCache<T extends ts.ResolutionWithFailedLookupLocations>(
         cacheType: string,
@@ -384,6 +406,8 @@ export function verifyResolutionCache(
         cache: ts.ModeAwareCache<T> | undefined,
         getResolvedFileName: (resolution: T) => string | undefined,
         storeExpected: Map<ts.Path, ts.ModeAwareCache<ts.ResolutionWithFailedLookupLocations>>,
+        moduleOrTypeRefCache: ts.ModuleOrTypeReferenceResolutionCache<T>,
+        getRedirectReferenceForResolution: () => ts.ResolvedProjectReference | undefined,
         getProgramResolutions: (name: string, mode: ts.ResolutionMode) => T | undefined,
     ) {
         ts.Debug.assert(
@@ -396,6 +420,14 @@ export function verifyResolutionCache(
             const expected = collectResolution(cacheType, fileName, resolved, resolvedFileName, name, mode);
             if (!expectedCache) storeExpected.set(fileName, expectedCache = ts.createModeAwareCache());
             expectedCache.set(name, mode, expected);
+            ts.setPerDirectoryAndNonRelativeNameCacheResult(
+                moduleOrTypeRefCache,
+                name,
+                mode,
+                ts.getDirectoryPath(fileName),
+                getRedirectReferenceForResolution(),
+                expected as unknown as T,
+            );
             // Resolution in cache should be same as that is in program
             ts.Debug.assert(
                 resolved === getProgramResolutions(name, mode),
@@ -526,6 +558,90 @@ export function verifyResolutionCache(
             ts.Debug.assert(expected === actual, `${projectName}:: ${caption}`);
         }, "dirPathToSymlinkPackageRefCount");
     }
+
+    function verifyModuleOrTypeResolutionCache(
+        expected: ts.ModuleOrTypeReferenceResolutionCache<ts.ResolutionWithFailedLookupLocations>,
+        actual: ts.ModuleOrTypeReferenceResolutionCache<ts.ResolutionWithFailedLookupLocations>,
+        cacheType: string,
+    ) {
+        verfiyCacheWithRedirects(
+            expected.directoryToModuleNameMap,
+            actual.directoryToModuleNameMap,
+            verifyDirectoryToModuleNameMap,
+            `${cacheType}:: directoryToModuleNameMap`,
+        );
+        verfiyCacheWithRedirects(
+            expected.moduleNameToDirectoryMap,
+            actual.moduleNameToDirectoryMap,
+            verifyModuleNameToDirectoryMap,
+            `${cacheType}:: moduleNameToDirectoryMap`,
+        );
+    }
+
+    function verifyDirectoryToModuleNameMap(
+        expected: ts.ModeAwareCache<ts.ResolutionWithFailedLookupLocations> | undefined,
+        actual: ts.ModeAwareCache<ts.ResolutionWithFailedLookupLocations> | undefined,
+        caption: string,
+    ) {
+        verifyModeAwareCache(
+            expected,
+            actual,
+            verfiyResolution,
+            caption,
+        );
+    }
+
+    function verifyModuleNameToDirectoryMap(
+        expected: ts.PerNonRelativeNameCache<ts.ResolutionWithFailedLookupLocations> | undefined,
+        actual: ts.PerNonRelativeNameCache<ts.ResolutionWithFailedLookupLocations> | undefined,
+        caption: string,
+    ) {
+        verifyMap(
+            expected?.directoryPathMap,
+            actual?.directoryPathMap,
+            verfiyResolution,
+            caption,
+        );
+    }
+
+    function verfiyResolution(
+        expected: ts.ResolutionWithFailedLookupLocations | undefined,
+        actual: ts.ResolutionWithFailedLookupLocations | undefined,
+        caption: string,
+    ) {
+        ts.Debug.assert(
+            expectedToResolution.get(expected as ExpectedResolution) === actual,
+            `${projectName}:: ${caption} Expected resolution need to match in actual`,
+        );
+    }
+
+    function verifyModuleOrTypeResolutionCacheIsEmpty(
+        cache: ts.ModuleOrTypeReferenceResolutionCache<ts.ResolutionWithFailedLookupLocations>,
+        cacheType: string,
+    ) {
+        verifyCacheWithRedirectsIsEmpty(
+            cache.directoryToModuleNameMap,
+            `${cacheType}:: directoryToModuleNameMap`,
+        );
+        verifyCacheWithRedirectsIsEmpty(
+            cache.moduleNameToDirectoryMap,
+            `${cacheType}:: moduleNameToDirectoryMap`,
+        );
+    }
+
+    function verifyCacheWithRedirectsIsEmpty<K, V>(
+        cache: ts.CacheWithRedirects<K, V>,
+        cacheType: string,
+    ) {
+        ts.Debug.assert(
+            cache.getOwnMap().size === 0,
+            `${projectName}:: ${cacheType}:: ownMap should be empty`,
+        );
+        ts.Debug.assert(
+            cache.redirectsKeyToMap.size === 0,
+            `${projectName}:: ${cacheType}:: redirectsKeyToMap should be empty`,
+        );
+    }
 }
 
 function verifyMap<Key extends string, Expected, Actual>(
@@ -565,6 +681,31 @@ function verifyArray(
     return verifySet(expected && new Set(expected), actual && new Set(actual), caption);
 }
 
+function verifyModeAwareCache<T>(
+    expected: ts.ModeAwareCache<T> | undefined,
+    actual: ts.ModeAwareCache<T> | undefined,
+    verifyValue: (expected: T | undefined, actual: T | undefined, caption: string) => void,
+    caption: string,
+) {
+    expected?.forEach((expected, key, mode) => verifyValue(expected, actual?.get(key, mode), `${caption}:: ${key}:: ${mode}`));
+    actual?.forEach((actual, key, mode) => verifyValue(expected?.get(key, mode), actual, `${caption}:: ${key}:: ${mode}`));
+}
+
+function verfiyCacheWithRedirects<K extends string, V>(
+    expected: ts.CacheWithRedirects<K, V>,
+    actual: ts.CacheWithRedirects<K, V>,
+    verifyValue: (expected: V | undefined, actual: V | undefined, caption: string) => void,
+    cacheType: string,
+) {
+    verifyMap(expected.getOwnMap(), actual.getOwnMap(), verifyValue, `${cacheType}:: ownMap`);
+    verifyMap(
+        expected.redirectsKeyToMap,
+        actual.redirectsKeyToMap,
+        (expected, actual, key) => verifyMap(expected, actual, verifyValue, key),
+        `${cacheType}:: redirectsKeyToMap`,
+    );
+}
+
 function verifyProgram(service: ts.server.ProjectService, project: ts.server.Project) {
     if (service.serverMode === ts.LanguageServiceMode.Syntactic) return;
     const options = project.getCompilerOptions();
diff --git a/src/server/project.ts b/src/server/project.ts
index 6dec9a942fd47..44c88143d976f 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -836,7 +836,7 @@ export abstract class Project implements LanguageServiceHost, ModuleResolutionHo
 
     /** @internal */
     getModuleResolutionCache(): ModuleResolutionCache | undefined {
-        return this.resolutionCache.getModuleResolutionCache();
+        return this.resolutionCache.moduleResolutionCache;
     }
 
     /** @internal */
diff --git a/tests/baselines/reference/tscWatch/moduleResolution/late-discovered-dependency-symlink.js b/tests/baselines/reference/tscWatch/moduleResolution/late-discovered-dependency-symlink.js
index 5d505315f53cc..b1513e3a6b205 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/late-discovered-dependency-symlink.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/late-discovered-dependency-symlink.js
@@ -203,20 +203,7 @@ Output::
 
 Reusing resolution of module 'package-b' from '/workspace/packageC/index.ts' of old program, it was successfully resolved to '/workspace/packageB/index.d.ts'.
 ======== Resolving module 'package-b' from '/workspace/packageC/package.json'. ========
-Module resolution kind is not specified, using 'Node10'.
-Loading module 'package-b' from 'node_modules' folder, target file types: TypeScript, Declaration.
-Searching all ancestor node_modules directories for preferred extensions: TypeScript, Declaration.
-File '/workspace/packageC/node_modules/package-b/package.json' exists according to earlier cached lookups.
-File '/workspace/packageC/node_modules/package-b.ts' does not exist.
-File '/workspace/packageC/node_modules/package-b.tsx' does not exist.
-File '/workspace/packageC/node_modules/package-b.d.ts' does not exist.
-'package.json' does not have a 'typings' field.
-'package.json' does not have a 'types' field.
-'package.json' does not have a 'main' field.
-File '/workspace/packageC/node_modules/package-b/index.ts' does not exist.
-File '/workspace/packageC/node_modules/package-b/index.tsx' does not exist.
-File '/workspace/packageC/node_modules/package-b/index.d.ts' exists - use it as a name resolution result.
-Resolving real path for '/workspace/packageC/node_modules/package-b/index.d.ts', result '/workspace/packageB/index.d.ts'.
+Resolution for module 'package-b' was found in cache from location '/workspace/packageC'.
 ======== Module name 'package-b' was successfully resolved to '/workspace/packageB/index.d.ts'. ========
 ======== Resolving module 'package-a' from '/workspace/packageC/package.json'. ========
 Module resolution kind is not specified, using 'Node10'.
diff --git a/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-file-are-partially-used.js b/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-file-are-partially-used.js
index 2def243df2a06..b13c3e7d5c11b 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-file-are-partially-used.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-file-are-partially-used.js
@@ -277,26 +277,7 @@ File '/user/username/package.json' does not exist according to earlier cached lo
 File '/user/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
 ======== Resolving module 'pkg' from '/user/username/projects/myproject/a.ts'. ========
-Explicitly specified module resolution kind: 'Node16'.
-Resolving in ESM mode with conditions 'import', 'types', 'node'.
-File '/user/username/projects/myproject/package.json' does not exist according to earlier cached lookups.
-File '/user/username/projects/package.json' does not exist according to earlier cached lookups.
-File '/user/username/package.json' does not exist according to earlier cached lookups.
-File '/user/package.json' does not exist according to earlier cached lookups.
-File '/package.json' does not exist according to earlier cached lookups.
-Loading module 'pkg' from 'node_modules' folder, target file types: TypeScript, JavaScript, Declaration.
-Searching all ancestor node_modules directories for preferred extensions: TypeScript, Declaration.
-File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
-Entering conditional exports.
-Matched 'exports' condition 'import'.
-Using 'exports' subpath '.' with target './import.js'.
-File name '/user/username/projects/myproject/node_modules/pkg/import.js' has a '.js' extension - stripping it.
-File '/user/username/projects/myproject/node_modules/pkg/import.ts' does not exist.
-File '/user/username/projects/myproject/node_modules/pkg/import.tsx' does not exist.
-File '/user/username/projects/myproject/node_modules/pkg/import.d.ts' exists - use it as a name resolution result.
-Resolved under condition 'import'.
-Exiting conditional exports.
-Resolving real path for '/user/username/projects/myproject/node_modules/pkg/import.d.ts', result '/user/username/projects/myproject/node_modules/pkg/import.d.ts'.
+Resolution for module 'pkg' was found in cache from location '/user/username/projects/myproject'.
 ======== Module name 'pkg' was successfully resolved to '/user/username/projects/myproject/node_modules/pkg/import.d.ts' with Package ID 'pkg/import.d.ts@0.0.1'. ========
 File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
 File '/user/username/projects/myproject/package.json' does not exist according to earlier cached lookups.
diff --git a/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-files-with-partially-used-import-attributes.js b/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-files-with-partially-used-import-attributes.js
index fd1cf6e5e43a2..84a78ca12dd7b 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-files-with-partially-used-import-attributes.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/module-resolutions-from-files-with-partially-used-import-attributes.js
@@ -277,26 +277,7 @@ File '/user/username/package.json' does not exist according to earlier cached lo
 File '/user/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
 ======== Resolving module 'pkg' from '/user/username/projects/myproject/a.ts'. ========
-Explicitly specified module resolution kind: 'Node16'.
-Resolving in ESM mode with conditions 'import', 'types', 'node'.
-File '/user/username/projects/myproject/package.json' does not exist according to earlier cached lookups.
-File '/user/username/projects/package.json' does not exist according to earlier cached lookups.
-File '/user/username/package.json' does not exist according to earlier cached lookups.
-File '/user/package.json' does not exist according to earlier cached lookups.
-File '/package.json' does not exist according to earlier cached lookups.
-Loading module 'pkg' from 'node_modules' folder, target file types: TypeScript, JavaScript, Declaration.
-Searching all ancestor node_modules directories for preferred extensions: TypeScript, Declaration.
-File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
-Entering conditional exports.
-Matched 'exports' condition 'import'.
-Using 'exports' subpath '.' with target './import.js'.
-File name '/user/username/projects/myproject/node_modules/pkg/import.js' has a '.js' extension - stripping it.
-File '/user/username/projects/myproject/node_modules/pkg/import.ts' does not exist.
-File '/user/username/projects/myproject/node_modules/pkg/import.tsx' does not exist.
-File '/user/username/projects/myproject/node_modules/pkg/import.d.ts' exists - use it as a name resolution result.
-Resolved under condition 'import'.
-Exiting conditional exports.
-Resolving real path for '/user/username/projects/myproject/node_modules/pkg/import.d.ts', result '/user/username/projects/myproject/node_modules/pkg/import.d.ts'.
+Resolution for module 'pkg' was found in cache from location '/user/username/projects/myproject'.
 ======== Module name 'pkg' was successfully resolved to '/user/username/projects/myproject/node_modules/pkg/import.d.ts' with Package ID 'pkg/import.d.ts@0.0.1'. ========
 File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
 File '/user/username/projects/myproject/package.json' does not exist according to earlier cached lookups.
diff --git a/tests/baselines/reference/tscWatch/moduleResolution/package-json-file-is-edited.js b/tests/baselines/reference/tscWatch/moduleResolution/package-json-file-is-edited.js
index 32ad7e78d9a5e..4f72ca44d659f 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/package-json-file-is-edited.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/package-json-file-is-edited.js
@@ -653,9 +653,9 @@ Directory '/user/username/projects/myproject/src/fileB.mjs' does not exist, skip
 File '/a/lib/package.json' does not exist according to earlier cached lookups.
 File '/a/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
+FileWatcher:: Close:: WatchInfo: /user/username/projects/package.json 2000 undefined File location affecting resolution
 DirectoryWatcher:: Close:: WatchInfo: /user/username/projects/myproject/src/fileB.mjs 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /user/username/projects/myproject/src/fileB.mjs 1 undefined Failed Lookup Locations
-FileWatcher:: Close:: WatchInfo: /user/username/projects/package.json 2000 undefined File location affecting resolution
 src/fileA.ts:1:21 - error TS2307: Cannot find module './fileB.mjs' or its corresponding type declarations.
 
 1 import { foo } from "./fileB.mjs";
diff --git a/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js b/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js
index 90cfb9b71ef4c..25006b1100462 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js
@@ -293,23 +293,8 @@ File '/user/username/projects/package.json' does not exist according to earlier
 File '/user/username/package.json' does not exist according to earlier cached lookups.
 File '/user/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
-======== Resolving type reference directive 'pkg', containing file '/user/username/projects/myproject/a.ts', root directory '/user/username/projects/myproject/node_modules/@types,/user/username/projects/node_modules/@types,/user/username/node_modules/@types,/user/node_modules/@types,/node_modules/@types'. ========
-Resolving with primary search path '/user/username/projects/myproject/node_modules/@types, /user/username/projects/node_modules/@types, /user/username/node_modules/@types, /user/node_modules/@types, /node_modules/@types'.
-Directory '/user/username/projects/node_modules/@types' does not exist, skipping all lookups in it.
-Directory '/user/username/node_modules/@types' does not exist, skipping all lookups in it.
-Directory '/user/node_modules/@types' does not exist, skipping all lookups in it.
-Directory '/node_modules/@types' does not exist, skipping all lookups in it.
-Looking up in 'node_modules' folder, initial location '/user/username/projects/myproject'.
-Searching all ancestor node_modules directories for preferred extensions: Declaration.
-File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
-Entering conditional exports.
-Matched 'exports' condition 'import'.
-Using 'exports' subpath '.' with target './import.js'.
-File name '/user/username/projects/myproject/node_modules/pkg/import.js' has a '.js' extension - stripping it.
-File '/user/username/projects/myproject/node_modules/pkg/import.d.ts' exists - use it as a name resolution result.
-Resolved under condition 'import'.
-Exiting conditional exports.
-Resolving real path for '/user/username/projects/myproject/node_modules/pkg/import.d.ts', result '/user/username/projects/myproject/node_modules/pkg/import.d.ts'.
+======== Resolving type reference directive 'pkg', containing file '/user/username/projects/myproject/a.ts'. ========
+Resolution for type reference directive 'pkg' was found in cache from location '/user/username/projects/myproject'.
 ======== Type reference directive 'pkg' was successfully resolved to '/user/username/projects/myproject/node_modules/pkg/import.d.ts' with Package ID 'pkg/import.d.ts@0.0.1', primary: false. ========
 File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
 File '/user/username/projects/myproject/package.json' does not exist according to earlier cached lookups.
diff --git a/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references-with-nodenext.js b/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references-with-nodenext.js
index 1696a203bea32..2ce5032376253 100644
--- a/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references-with-nodenext.js
+++ b/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references-with-nodenext.js
@@ -1310,7 +1310,7 @@ File '/user/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
 ======== Resolving module '@ref/a' from '/user/username/projects/transitiveReferences/b.ts'. ========
 Using compiler options of project reference redirect '/user/username/projects/transitiveReferences/tsconfig.b.json'.
-Module resolution kind is not specified, using 'NodeNext'.
+Resolution for module '@ref/a' was found in cache from location '/user/username/projects/transitiveReferences'.
 ======== Module name '@ref/a' was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'. ========
 File '/user/username/projects/transitiveReferences/refs/package.json' does not exist according to earlier cached lookups.
 File '/user/username/projects/transitiveReferences/package.json' does not exist according to earlier cached lookups.
@@ -1464,16 +1464,7 @@ File '/user/username/package.json' does not exist according to earlier cached lo
 File '/user/package.json' does not exist according to earlier cached lookups.
 File '/package.json' does not exist according to earlier cached lookups.
 ======== Resolving module '@ref/a' from '/user/username/projects/transitiveReferences/b.ts'. ========
-Module resolution kind is not specified, using 'NodeNext'.
-Resolving in CJS mode with conditions 'require', 'types', 'node'.
-'baseUrl' option is set to '/user/username/projects/transitiveReferences', using this value to resolve non-relative module name '@ref/a'.
-'paths' option is specified, looking for a pattern to match module name '@ref/a'.
-Module name '@ref/a', matched pattern '@ref/*'.
-Trying substitution './refs/*', candidate module location: './refs/a'.
-Loading module as file / folder, candidate module location '/user/username/projects/transitiveReferences/refs/a', target file types: TypeScript, JavaScript, Declaration.
-File '/user/username/projects/transitiveReferences/refs/a.ts' does not exist.
-File '/user/username/projects/transitiveReferences/refs/a.tsx' does not exist.
-File '/user/username/projects/transitiveReferences/refs/a.d.ts' exists - use it as a name resolution result.
+Resolution for module '@ref/a' was found in cache from location '/user/username/projects/transitiveReferences'.
 ======== Module name '@ref/a' was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'. ========
 File '/user/username/projects/transitiveReferences/refs/package.json' does not exist according to earlier cached lookups.
 File '/user/username/projects/transitiveReferences/package.json' does not exist according to earlier cached lookups.
diff --git a/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references.js b/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references.js
index b6cd8ea567b72..668a565910746 100644
--- a/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references.js
+++ b/tests/baselines/reference/tscWatch/projectsWithReferences/on-transitive-references.js
@@ -1067,7 +1067,7 @@ Reusing resolution of module './b' from '/user/username/projects/transitiveRefer
 Reusing resolution of module '@ref/a' from '/user/username/projects/transitiveReferences/c.ts' of old program, it was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'.
 ======== Resolving module '@ref/a' from '/user/username/projects/transitiveReferences/b.ts'. ========
 Using compiler options of project reference redirect '/user/username/projects/transitiveReferences/tsconfig.b.json'.
-Module resolution kind is not specified, using 'Node10'.
+Resolution for module '@ref/a' was found in cache from location '/user/username/projects/transitiveReferences'.
 ======== Module name '@ref/a' was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'. ========
 ../../../../a/lib/lib.d.ts
   Default library for target 'es5'
@@ -1187,15 +1187,7 @@ Output::
 Reusing resolution of module './b' from '/user/username/projects/transitiveReferences/c.ts' of old program, it was successfully resolved to '/user/username/projects/transitiveReferences/b.ts'.
 Reusing resolution of module '@ref/a' from '/user/username/projects/transitiveReferences/c.ts' of old program, it was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'.
 ======== Resolving module '@ref/a' from '/user/username/projects/transitiveReferences/b.ts'. ========
-Module resolution kind is not specified, using 'Node10'.
-'baseUrl' option is set to '/user/username/projects/transitiveReferences', using this value to resolve non-relative module name '@ref/a'.
-'paths' option is specified, looking for a pattern to match module name '@ref/a'.
-Module name '@ref/a', matched pattern '@ref/*'.
-Trying substitution './refs/*', candidate module location: './refs/a'.
-Loading module as file / folder, candidate module location '/user/username/projects/transitiveReferences/refs/a', target file types: TypeScript, Declaration.
-File '/user/username/projects/transitiveReferences/refs/a.ts' does not exist.
-File '/user/username/projects/transitiveReferences/refs/a.tsx' does not exist.
-File '/user/username/projects/transitiveReferences/refs/a.d.ts' exists - use it as a name resolution result.
+Resolution for module '@ref/a' was found in cache from location '/user/username/projects/transitiveReferences'.
 ======== Module name '@ref/a' was successfully resolved to '/user/username/projects/transitiveReferences/refs/a.d.ts'. ========
 tsconfig.c.json:14:5 - error TS6053: File '/user/username/projects/transitiveReferences/tsconfig.b.json' not found.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Linux.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Linux.js
index a45737a9c1015..cb267b67f3c20 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Linux.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Linux.js
@@ -960,14 +960,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-MacOs.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-MacOs.js
index d44c002843b0d..ebf929a1a9764 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-MacOs.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-MacOs.js
@@ -939,14 +939,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Windows.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Windows.js
index d71a01cc171ba..76119bc811b53 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Windows.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-Windows.js
@@ -879,14 +879,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Linux.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Linux.js
index 4c71a54e76567..75702a5511414 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Linux.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Linux.js
@@ -681,14 +681,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-MacOs.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-MacOs.js
index 429688609da6d..0188066f9a8ff 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-MacOs.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-MacOs.js
@@ -723,14 +723,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Windows.js b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Windows.js
index 1d5273a777753..e88bc03be41cb 100644
--- a/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Windows.js
+++ b/tests/baselines/reference/tscWatch/symlinks/packages-outside-project-folder-built-Windows.js
@@ -663,14 +663,14 @@ Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modu
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/c.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib/index.d.ts 250 undefined Source file
 FileWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/index.d.ts 250 undefined Source file
+DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
+Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Failed Lookup Locations
 DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
 Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Failed Lookup Locations
-DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
-Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Failed Lookup Locations
 FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined File location affecting resolution
 src/index.ts:1:19 - error TS2307: Cannot find module 'a' or its corresponding type declarations.
 
diff --git a/tests/baselines/reference/tsserver/cachingFileSystemInformation/loads-missing-files-from-disk.js b/tests/baselines/reference/tsserver/cachingFileSystemInformation/loads-missing-files-from-disk.js
index 711aa5ed4aea7..1131a89c21fb5 100644
--- a/tests/baselines/reference/tsserver/cachingFileSystemInformation/loads-missing-files-from-disk.js
+++ b/tests/baselines/reference/tsserver/cachingFileSystemInformation/loads-missing-files-from-disk.js
@@ -376,12 +376,12 @@ Projects::
 
 Info seq  [hh:mm:ss:mss] Starting updateGraphWorker: Project: /dev/null/inferredProject1*
 Info seq  [hh:mm:ss:mss] FileWatcher:: Added:: WatchInfo: /users/username/projects/project/bar.d.ts 500 undefined WatchType: Closed Script info
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects 0 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects 0 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/project/node_modules 1 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/project/node_modules 1 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/node_modules 1 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/node_modules 1 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects 0 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects 0 undefined Project: /dev/null/inferredProject1* WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /dev/null/inferredProject1* projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: SafeModules Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/dev/null/inferredProject1*' (Inferred)
 Info seq  [hh:mm:ss:mss] 	Files (2)
diff --git a/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-has-node_modules-setup-but-doesnt-have-modules-in-typings-folder-and-then-recompiles.js b/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-has-node_modules-setup-but-doesnt-have-modules-in-typings-folder-and-then-recompiles.js
index 61df6c179040d..ac269e04830c6 100644
--- a/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-has-node_modules-setup-but-doesnt-have-modules-in-typings-folder-and-then-recompiles.js
+++ b/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-has-node_modules-setup-but-doesnt-have-modules-in-typings-folder-and-then-recompiles.js
@@ -425,10 +425,10 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/p
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/src 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/src 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules/@microsoft/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules/@microsoft/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
diff --git a/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-recompiles-after-deleting-generated-folders.js b/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-recompiles-after-deleting-generated-folders.js
index 32d5567a17e1d..57e452d76f6a8 100644
--- a/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-recompiles-after-deleting-generated-folders.js
+++ b/tests/baselines/reference/tsserver/symLinks/module-resolution-with-path-mapping-when-project-recompiles-after-deleting-generated-folders.js
@@ -662,10 +662,10 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/p
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/src 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/src 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules/@microsoft/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules/@microsoft/recognizers-text 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/recognizers-date-time/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/packages/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /users/username/projects/myproject/javascript/node_modules 1 undefined Project: /users/username/projects/myproject/javascript/packages/recognizers-date-time/tsconfig.json WatchType: Failed Lookup Locations
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux-canUseWatchEvents.js
index a00d6053ca830..78aca577d9676 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux-canUseWatchEvents.js
@@ -1969,6 +1969,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":29,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 23
+      }
+    }
+Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -2005,18 +2017,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":19,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 23
-      }
-    }
-Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux.js
index 0f1029819a99f..845f25bea91c6 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Linux.js
@@ -1555,14 +1555,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 3 projectProgramVersion: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs-canUseWatchEvents.js
index 57810f52031b7..18b5f32e23592 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs-canUseWatchEvents.js
@@ -1956,6 +1956,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":29,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 23
+      }
+    }
+Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -1992,18 +2004,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":19,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 23
-      }
-    }
-Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs.js
index 1c09ff99d9230..c5aec31db10d7 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-MacOs.js
@@ -1532,14 +1532,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 3 projectProgramVersion: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows-canUseWatchEvents.js
index ecf5f374c572c..e0147ebe0e35d 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows-canUseWatchEvents.js
@@ -1969,6 +1969,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":29,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 23
+      }
+    }
+Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -2005,18 +2017,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":19,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 23
-      }
-    }
-Custom watchDirectory:: Close:: {"id":23,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows.js
index b406beb9213a4..30519af1459ad 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-Windows.js
@@ -1478,14 +1478,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 3 projectProgramVersion: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux-canUseWatchEvents.js
index 6a30981af13c7..ab76f5588c5eb 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux-canUseWatchEvents.js
@@ -1491,6 +1491,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":24,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 12
+      }
+    }
+Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -1527,18 +1539,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":8,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 12
-      }
-    }
-Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux.js
index 16570b0e726a1..f0e0e86b777f3 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Linux.js
@@ -1187,14 +1187,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs-canUseWatchEvents.js
index fa95914f4d26b..c7be27d3ee475 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs-canUseWatchEvents.js
@@ -1491,6 +1491,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":24,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 12
+      }
+    }
+Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -1527,18 +1539,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":8,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 12
-      }
-    }
-Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs.js
index 393e34be863db..533859fccb243 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-MacOs.js
@@ -1219,14 +1219,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows-canUseWatchEvents.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows-canUseWatchEvents.js
index 006ac59592ff3..76a490b209e1f 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows-canUseWatchEvents.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows-canUseWatchEvents.js
@@ -1491,6 +1491,18 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Added:: {"id":24,"path":"/home/src/projects/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] event:
+    {
+      "seq": 0,
+      "type": "event",
+      "event": "closeFileWatcher",
+      "body": {
+        "id": 12
+      }
+    }
+Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] event:
     {
@@ -1527,18 +1539,6 @@ Info seq  [hh:mm:ss:mss] event:
     }
 Custom watchDirectory:: Close:: {"id":8,"path":"/home/src/projects/a/1/a-impl/a/node_modules","recursive":true}
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] event:
-    {
-      "seq": 0,
-      "type": "event",
-      "event": "closeFileWatcher",
-      "body": {
-        "id": 12
-      }
-    }
-Custom watchDirectory:: Close:: {"id":12,"path":"/home/src/projects/c/3/c-impl/c/lib","recursive":false,"ignoreUpdate":true}
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/lib 0 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] event:
     {
diff --git a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows.js b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows.js
index 48fbb1aa58857..11e59b4facbdd 100644
--- a/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows.js
+++ b/tests/baselines/reference/tsserver/symLinks/packages-outside-project-folder-built-Windows.js
@@ -1165,14 +1165,14 @@ Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/project
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/b/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /home/src/projects/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
+Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/lib/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/a/1/a-impl/a/node_modules 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
-Info seq  [hh:mm:ss:mss] Elapsed:: *ms DirectoryWatcher:: Close:: WatchInfo: /home/src/projects/c 1 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: Failed Lookup Locations
 Info seq  [hh:mm:ss:mss] FileWatcher:: Close:: WatchInfo: /home/src/projects/c/3/c-impl/c/package.json 2000 undefined Project: /home/src/projects/b/2/b-impl/b/tsconfig.json WatchType: File location affecting resolution
 Info seq  [hh:mm:ss:mss] Finishing updateGraphWorker: Project: /home/src/projects/b/2/b-impl/b/tsconfig.json projectStateVersion: 2 projectProgramVersion: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
 Info seq  [hh:mm:ss:mss] Project '/home/src/projects/b/2/b-impl/b/tsconfig.json' (Configured)