`fs.watch`: endless file events reported

Version

v22.21.1

Platform

Microsoft Windows NT 10.0.26200.0 x64

Subsystem

No response

What steps will reproduce the bug?

• create a folder vscode
• run this command in that folder mkdir .vscode && echo {"editor.fontSize": 33}>.vscode\settings.json
• run the following node.js script in a terminal pointing to the folder vscode/.vscode
• run this command in that folder rmdir /s /q .vscode\ && mkdir .vscode && echo {"editor.fontSize": 33}>.vscode\settings.json

const fs = require("fs");

fs.watch("<path to a folder>/.vscode", (eventType, filename) => {
    if (filename) {
        console.log(`Event Type: ${eventType}`);
        console.log(`Filename: ${filename}`);
    } else {
        console.log("Filename not provided");
    }
});

How often does it reproduce? Is there a required condition?

Always.

What is the expected behavior? Why is that the expected behavior?

After running the last command there should be change events reported in an endless fashion.

What do you see instead?

Endless reports of:

Filename: \\?\C:\Users\bpasero\Desktop\testing-watcher\.vscode
Event Type: rename
Filename: \\?\C:\Users\bpasero\Desktop\testing-watcher\.vscode
Event Type: rename
Filename: \\?\C:\Users\bpasero\Desktop\testing-watcher\.vscode
Event Type: rename
Filename: \\?\C:\Users\bpasero\Desktop\testing-watcher\.vscode
Event Type: rename

Additional information

Originally reported in VS Code repo as https://github.com/microsoft/vscode/issues/287800

Start with the fs.watch API and reproduce the Windows sequence using the provided Node.js script. Compare the repeated rename events and path values with the stated expected behavior, then trace the Windows file-watching path. Done means the reproduction no longer produces unintended endless events and the relevant behavior is covered by a test.