From 7f58b1805fd77a85d4747da17f5ef836ad0100d0 Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 14:55:12 -0800
Subject: [PATCH 1/6] Test case

---
 ...eReferenceDirectiveWithTypeAsFile.errors.txt | 17 +++++++++++++++++
 .../typeReferenceDirectiveWithTypeAsFile.js     | 11 +++++++++++
 ...typeReferenceDirectiveWithTypeAsFile.symbols |  4 ++++
 ...eReferenceDirectiveWithTypeAsFile.trace.json | 10 ++++++++++
 .../typeReferenceDirectiveWithTypeAsFile.types  |  4 ++++
 .../typeReferenceDirectiveWithTypeAsFile.ts     | 11 +++++++++++
 6 files changed, 57 insertions(+)
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.js
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
 create mode 100644 tests/cases/compiler/typeReferenceDirectiveWithTypeAsFile.ts

diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt
new file mode 100644
index 0000000000000..0e34e0fcb8190
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt
@@ -0,0 +1,17 @@
+error TS2688: Cannot find type definition file for 'phaser'.
+  The file is in the program because:
+    Entry point of type library 'phaser' specified in compilerOptions
+/a.ts(1,1): error TS2304: Cannot find name 'a'.
+
+
+!!! error TS2688: Cannot find type definition file for 'phaser'.
+!!! error TS2688:   The file is in the program because:
+!!! error TS2688:     Entry point of type library 'phaser' specified in compilerOptions
+==== /a.ts (1 errors) ====
+    a;
+    ~
+!!! error TS2304: Cannot find name 'a'.
+    
+==== /node_modules/phaser/types/phaser.d.ts (0 errors) ====
+    declare const a: number;
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.js b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.js
new file mode 100644
index 0000000000000..58a1fb047d8b2
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.js
@@ -0,0 +1,11 @@
+//// [tests/cases/compiler/typeReferenceDirectiveWithTypeAsFile.ts] ////
+
+//// [phaser.d.ts]
+declare const a: number;
+
+//// [a.ts]
+a;
+
+
+//// [a.js]
+a;
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
new file mode 100644
index 0000000000000..e803f8614d33e
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
@@ -0,0 +1,4 @@
+=== /a.ts ===
+
+a;
+
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
new file mode 100644
index 0000000000000..e3c356a07350d
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
@@ -0,0 +1,10 @@
+[
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/node_modules/phaser/types'. ========",
+    "Resolving with primary search path '/node_modules/phaser/types'.",
+    "Looking up in 'node_modules' folder, initial location '/'.",
+    "File '/node_modules/phaser/package.json' does not exist.",
+    "File '/node_modules/phaser.d.ts' does not exist.",
+    "File '/node_modules/phaser/index.d.ts' does not exist.",
+    "Directory '/node_modules/@types' does not exist, skipping all lookups in it.",
+    "======== Type reference directive 'phaser' was not resolved. ========"
+]
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
new file mode 100644
index 0000000000000..2ec6ffcf1be41
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
@@ -0,0 +1,4 @@
+=== /a.ts ===
+a;
+>a : any
+
diff --git a/tests/cases/compiler/typeReferenceDirectiveWithTypeAsFile.ts b/tests/cases/compiler/typeReferenceDirectiveWithTypeAsFile.ts
new file mode 100644
index 0000000000000..e730d31001759
--- /dev/null
+++ b/tests/cases/compiler/typeReferenceDirectiveWithTypeAsFile.ts
@@ -0,0 +1,11 @@
+// @noImplicitReferences: true
+// @typeRoots: /node_modules/phaser/types
+// @types: phaser
+// @traceResolution: true
+// @currentDirectory: /
+
+// @Filename: /node_modules/phaser/types/phaser.d.ts
+declare const a: number;
+
+// @Filename: /a.ts
+a;

From 1c2318d92e2e93c99b8ed87419470ddfd7719796 Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 14:58:42 -0800
Subject: [PATCH 2/6] Resolve typeReferenceDirective as fileOrDirectory instead
 of just directory when its not default typeRoots Fixes #37708 Bug 2 part of
 the issue

---
 src/compiler/moduleNameResolver.ts              | 14 +++++++++++---
 .../reference/library-reference-1.trace.json    |  1 +
 .../reference/library-reference-10.trace.json   |  1 +
 .../reference/library-reference-13.trace.json   |  1 +
 .../reference/library-reference-14.trace.json   |  1 +
 .../reference/library-reference-15.trace.json   |  1 +
 .../reference/library-reference-2.trace.json    |  2 ++
 .../reference/library-reference-4.trace.json    |  4 ++++
 .../reference/library-reference-8.trace.json    |  4 ++++
 ...library-reference-scoped-packages.trace.json |  2 +-
 .../type-reference-from-primary-location.js     |  9 ++++++++-
 .../type-reference-from-secondary-location.js   |  5 +++++
 ...pe-reference-overrides-secondary-location.js |  1 +
 ...ent-resolution-options-referenced-project.js |  2 ++
 ...eReferenceDirectiveWithTypeAsFile.errors.txt | 17 -----------------
 ...typeReferenceDirectiveWithTypeAsFile.symbols |  6 +++++-
 ...eReferenceDirectiveWithTypeAsFile.trace.json |  8 +++-----
 .../typeReferenceDirectiveWithTypeAsFile.types  |  6 +++++-
 .../typeReferenceDirectives1.trace.json         |  1 +
 .../typeReferenceDirectives10.trace.json        |  1 +
 .../typeReferenceDirectives11.trace.json        |  1 +
 .../typeReferenceDirectives12.trace.json        |  1 +
 .../typeReferenceDirectives13.trace.json        |  1 +
 .../typeReferenceDirectives2.trace.json         |  1 +
 .../typeReferenceDirectives3.trace.json         |  1 +
 .../typeReferenceDirectives4.trace.json         |  1 +
 .../typeReferenceDirectives5.trace.json         |  1 +
 .../typeReferenceDirectives6.trace.json         |  1 +
 .../typeReferenceDirectives7.trace.json         |  1 +
 .../typeReferenceDirectives8.trace.json         |  1 +
 .../typeReferenceDirectives9.trace.json         |  1 +
 31 files changed, 69 insertions(+), 29 deletions(-)
 delete mode 100644 tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt

diff --git a/src/compiler/moduleNameResolver.ts b/src/compiler/moduleNameResolver.ts
index b400bc23ba1df..f187609b249b2 100644
--- a/src/compiler/moduleNameResolver.ts
+++ b/src/compiler/moduleNameResolver.ts
@@ -549,10 +549,18 @@ export function resolveTypeReferenceDirective(typeReferenceDirectiveName: string
             }
             return firstDefined(typeRoots, typeRoot => {
                 const candidate = combinePaths(typeRoot, typeReferenceDirectiveName);
-                const candidateDirectory = getDirectoryPath(candidate);
-                const directoryExists = directoryProbablyExists(candidateDirectory, host);
+                const directoryExists = directoryProbablyExists(typeRoot, host);
                 if (!directoryExists && traceEnabled) {
-                    trace(host, Diagnostics.Directory_0_does_not_exist_skipping_all_lookups_in_it, candidateDirectory);
+                    trace(host, Diagnostics.Directory_0_does_not_exist_skipping_all_lookups_in_it, typeRoot);
+                }
+                if (options.typeRoots) {
+                    // Custom typeRoots resolve as file or directory just like we do modules
+                    const resolvedFromFile = loadModuleFromFile(Extensions.Declaration, candidate, !directoryExists, moduleResolutionState);
+                    if (resolvedFromFile) {
+                        const packageDirectory = parseNodeModuleFromPath(resolvedFromFile.path);
+                        const packageInfo = packageDirectory ? getPackageJsonInfo(packageDirectory, /*onlyRecordFailures*/ false, moduleResolutionState) : undefined;
+                        return resolvedTypeScriptOnly(withPackageId(packageInfo, resolvedFromFile));
+                    }
                 }
                 return resolvedTypeScriptOnly(
                     loadNodeModuleFromDirectory(Extensions.Declaration, candidate,
diff --git a/tests/baselines/reference/library-reference-1.trace.json b/tests/baselines/reference/library-reference-1.trace.json
index 03dea210c7155..77993cd1539ae 100644
--- a/tests/baselines/reference/library-reference-1.trace.json
+++ b/tests/baselines/reference/library-reference-1.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/src/consumer.ts', root directory 'types'. ========",
     "Resolving with primary search path 'types'.",
+    "File 'types/jquery.d.ts' does not exist.",
     "File 'types/jquery/package.json' does not exist.",
     "File 'types/jquery/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for 'types/jquery/index.d.ts', result '/src/types/jquery/index.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-10.trace.json b/tests/baselines/reference/library-reference-10.trace.json
index ac5bacd893326..42b70d0519540 100644
--- a/tests/baselines/reference/library-reference-10.trace.json
+++ b/tests/baselines/reference/library-reference-10.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/foo/consumer.ts', root directory './types'. ========",
     "Resolving with primary search path './types'.",
+    "File './types/jquery.d.ts' does not exist.",
     "Found 'package.json' at './types/jquery/package.json'.",
     "'package.json' does not have a 'typesVersions' field.",
     "'package.json' has 'typings' field 'jquery.d.ts' that references 'types/jquery/jquery.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-13.trace.json b/tests/baselines/reference/library-reference-13.trace.json
index 70ebb87589937..c432daf6b44bd 100644
--- a/tests/baselines/reference/library-reference-13.trace.json
+++ b/tests/baselines/reference/library-reference-13.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/a/__inferred type names__.ts', root directory '/a/types'. ========",
     "Resolving with primary search path '/a/types'.",
+    "File '/a/types/jquery.d.ts' does not exist.",
     "File '/a/types/jquery/package.json' does not exist.",
     "File '/a/types/jquery/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/a/types/jquery/index.d.ts', result '/a/types/jquery/index.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-14.trace.json b/tests/baselines/reference/library-reference-14.trace.json
index 70ebb87589937..c432daf6b44bd 100644
--- a/tests/baselines/reference/library-reference-14.trace.json
+++ b/tests/baselines/reference/library-reference-14.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/a/__inferred type names__.ts', root directory '/a/types'. ========",
     "Resolving with primary search path '/a/types'.",
+    "File '/a/types/jquery.d.ts' does not exist.",
     "File '/a/types/jquery/package.json' does not exist.",
     "File '/a/types/jquery/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/a/types/jquery/index.d.ts', result '/a/types/jquery/index.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-15.trace.json b/tests/baselines/reference/library-reference-15.trace.json
index 0f76cf52984c7..6fbe14fc2211a 100644
--- a/tests/baselines/reference/library-reference-15.trace.json
+++ b/tests/baselines/reference/library-reference-15.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/a/__inferred type names__.ts', root directory 'types'. ========",
     "Resolving with primary search path 'types'.",
+    "File 'types/jquery.d.ts' does not exist.",
     "File 'types/jquery/package.json' does not exist.",
     "File 'types/jquery/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for 'types/jquery/index.d.ts', result '/a/types/jquery/index.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-2.trace.json b/tests/baselines/reference/library-reference-2.trace.json
index da8ad8d4e5577..c3e4c231894f4 100644
--- a/tests/baselines/reference/library-reference-2.trace.json
+++ b/tests/baselines/reference/library-reference-2.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'jquery', containing file '/consumer.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/jquery.d.ts' does not exist.",
     "Found 'package.json' at '/types/jquery/package.json'.",
     "'package.json' does not have a 'typesVersions' field.",
     "'package.json' does not have a 'typings' field.",
@@ -10,6 +11,7 @@
     "======== Type reference directive 'jquery' was successfully resolved to '/types/jquery/jquery.d.ts', primary: true. ========",
     "======== Resolving type reference directive 'jquery', containing file '/test/__inferred type names__.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/jquery.d.ts' does not exist.",
     "File '/types/jquery/package.json' exists according to earlier cached lookups.",
     "'package.json' does not have a 'typings' field.",
     "'package.json' has 'types' field 'jquery.d.ts' that references '/types/jquery/jquery.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-4.trace.json b/tests/baselines/reference/library-reference-4.trace.json
index ceeb754bb0bdd..80f4da9461e7c 100644
--- a/tests/baselines/reference/library-reference-4.trace.json
+++ b/tests/baselines/reference/library-reference-4.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'foo', containing file '/src/root.ts', root directory '/src'. ========",
     "Resolving with primary search path '/src'.",
+    "File '/src/foo.d.ts' does not exist.",
     "Looking up in 'node_modules' folder, initial location '/src'.",
     "Directory '/src/node_modules' does not exist, skipping all lookups in it.",
     "File '/node_modules/foo/package.json' does not exist.",
@@ -10,6 +11,7 @@
     "======== Type reference directive 'foo' was successfully resolved to '/node_modules/foo/index.d.ts', primary: false. ========",
     "======== Resolving type reference directive 'bar', containing file '/src/root.ts', root directory '/src'. ========",
     "Resolving with primary search path '/src'.",
+    "File '/src/bar.d.ts' does not exist.",
     "Looking up in 'node_modules' folder, initial location '/src'.",
     "Directory '/src/node_modules' does not exist, skipping all lookups in it.",
     "File '/node_modules/bar/package.json' does not exist.",
@@ -19,6 +21,7 @@
     "======== Type reference directive 'bar' was successfully resolved to '/node_modules/bar/index.d.ts', primary: false. ========",
     "======== Resolving type reference directive 'alpha', containing file '/node_modules/foo/index.d.ts', root directory '/src'. ========",
     "Resolving with primary search path '/src'.",
+    "File '/src/alpha.d.ts' does not exist.",
     "Looking up in 'node_modules' folder, initial location '/node_modules/foo'.",
     "File '/node_modules/foo/node_modules/alpha/package.json' does not exist.",
     "File '/node_modules/foo/node_modules/alpha.d.ts' does not exist.",
@@ -27,6 +30,7 @@
     "======== Type reference directive 'alpha' was successfully resolved to '/node_modules/foo/node_modules/alpha/index.d.ts', primary: false. ========",
     "======== Resolving type reference directive 'alpha', containing file '/node_modules/bar/index.d.ts', root directory '/src'. ========",
     "Resolving with primary search path '/src'.",
+    "File '/src/alpha.d.ts' does not exist.",
     "Looking up in 'node_modules' folder, initial location '/node_modules/bar'.",
     "File '/node_modules/bar/node_modules/alpha/package.json' does not exist.",
     "File '/node_modules/bar/node_modules/alpha.d.ts' does not exist.",
diff --git a/tests/baselines/reference/library-reference-8.trace.json b/tests/baselines/reference/library-reference-8.trace.json
index 4d5f694c93495..25f8a6a4a7fe3 100644
--- a/tests/baselines/reference/library-reference-8.trace.json
+++ b/tests/baselines/reference/library-reference-8.trace.json
@@ -1,24 +1,28 @@
 [
     "======== Resolving type reference directive 'alpha', containing file '/test/foo.ts', root directory '/test/types'. ========",
     "Resolving with primary search path '/test/types'.",
+    "File '/test/types/alpha.d.ts' does not exist.",
     "File '/test/types/alpha/package.json' does not exist.",
     "File '/test/types/alpha/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/test/types/alpha/index.d.ts', result '/test/types/alpha/index.d.ts'.",
     "======== Type reference directive 'alpha' was successfully resolved to '/test/types/alpha/index.d.ts', primary: true. ========",
     "======== Resolving type reference directive 'beta', containing file '/test/foo.ts', root directory '/test/types'. ========",
     "Resolving with primary search path '/test/types'.",
+    "File '/test/types/beta.d.ts' does not exist.",
     "File '/test/types/beta/package.json' does not exist.",
     "File '/test/types/beta/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/test/types/beta/index.d.ts', result '/test/types/beta/index.d.ts'.",
     "======== Type reference directive 'beta' was successfully resolved to '/test/types/beta/index.d.ts', primary: true. ========",
     "======== Resolving type reference directive 'beta', containing file '/test/types/alpha/index.d.ts', root directory '/test/types'. ========",
     "Resolving with primary search path '/test/types'.",
+    "File '/test/types/beta.d.ts' does not exist.",
     "File '/test/types/beta/package.json' does not exist according to earlier cached lookups.",
     "File '/test/types/beta/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/test/types/beta/index.d.ts', result '/test/types/beta/index.d.ts'.",
     "======== Type reference directive 'beta' was successfully resolved to '/test/types/beta/index.d.ts', primary: true. ========",
     "======== Resolving type reference directive 'alpha', containing file '/test/types/beta/index.d.ts', root directory '/test/types'. ========",
     "Resolving with primary search path '/test/types'.",
+    "File '/test/types/alpha.d.ts' does not exist.",
     "File '/test/types/alpha/package.json' does not exist according to earlier cached lookups.",
     "File '/test/types/alpha/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/test/types/alpha/index.d.ts', result '/test/types/alpha/index.d.ts'.",
diff --git a/tests/baselines/reference/library-reference-scoped-packages.trace.json b/tests/baselines/reference/library-reference-scoped-packages.trace.json
index cfc8819820182..f9ee441141008 100644
--- a/tests/baselines/reference/library-reference-scoped-packages.trace.json
+++ b/tests/baselines/reference/library-reference-scoped-packages.trace.json
@@ -1,7 +1,7 @@
 [
     "======== Resolving type reference directive '@beep/boop', containing file '/a.ts', root directory 'types'. ========",
     "Resolving with primary search path 'types'.",
-    "Directory 'types/@beep' does not exist, skipping all lookups in it.",
+    "Directory 'types' does not exist, skipping all lookups in it.",
     "Looking up in 'node_modules' folder, initial location '/'.",
     "Scoped package detected, looking in 'beep__boop'",
     "File '/node_modules/@types/beep__boop/package.json' does not exist.",
diff --git a/tests/baselines/reference/moduleResolution/type-reference-from-primary-location.js b/tests/baselines/reference/moduleResolution/type-reference-from-primary-location.js
index b00b634abd1fa..f244e93ac5d46 100644
--- a/tests/baselines/reference/moduleResolution/type-reference-from-primary-location.js
+++ b/tests/baselines/reference/moduleResolution/type-reference-from-primary-location.js
@@ -12,6 +12,7 @@ Resolution:: {
     "isExternalLibraryImport": false
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json"
   ],
   "affectingLocations": [],
@@ -34,7 +35,9 @@ Resolution:: {
     "resolvedFileName": "/root/src/types/lib/typings/lib.d.ts",
     "isExternalLibraryImport": false
   },
-  "failedLookupLocations": [],
+  "failedLookupLocations": [
+    "/root/src/types/lib.d.ts"
+  ],
   "affectingLocations": [
     "/root/src/types/lib/package.json"
   ],
@@ -55,6 +58,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -81,6 +85,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib.d.ts"
@@ -105,6 +110,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -134,6 +140,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
diff --git a/tests/baselines/reference/moduleResolution/type-reference-from-secondary-location.js b/tests/baselines/reference/moduleResolution/type-reference-from-secondary-location.js
index 04c64b7a7d7a8..72cd01d10585d 100644
--- a/tests/baselines/reference/moduleResolution/type-reference-from-secondary-location.js
+++ b/tests/baselines/reference/moduleResolution/type-reference-from-secondary-location.js
@@ -12,6 +12,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -40,6 +41,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -72,6 +74,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -102,6 +105,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
@@ -137,6 +141,7 @@ Resolution:: {
     "isExternalLibraryImport": true
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json",
     "/root/src/types/lib/index.d.ts",
     "/root/src/node_modules/lib/package.json",
diff --git a/tests/baselines/reference/moduleResolution/type-reference-overrides-secondary-location.js b/tests/baselines/reference/moduleResolution/type-reference-overrides-secondary-location.js
index 2ada305086654..0dc6cdbb194b9 100644
--- a/tests/baselines/reference/moduleResolution/type-reference-overrides-secondary-location.js
+++ b/tests/baselines/reference/moduleResolution/type-reference-overrides-secondary-location.js
@@ -15,6 +15,7 @@ Resolution:: {
     "isExternalLibraryImport": false
   },
   "failedLookupLocations": [
+    "/root/src/types/lib.d.ts",
     "/root/src/types/lib/package.json"
   ],
   "affectingLocations": [],
diff --git a/tests/baselines/reference/tsbuild/moduleResolution/type-reference-resolution-uses-correct-options-for-different-resolution-options-referenced-project.js b/tests/baselines/reference/tsbuild/moduleResolution/type-reference-resolution-uses-correct-options-for-different-resolution-options-referenced-project.js
index be7128c25e2e8..b8ae1da9608b4 100644
--- a/tests/baselines/reference/tsbuild/moduleResolution/type-reference-resolution-uses-correct-options-for-different-resolution-options-referenced-project.js
+++ b/tests/baselines/reference/tsbuild/moduleResolution/type-reference-resolution-uses-correct-options-for-different-resolution-options-referenced-project.js
@@ -46,6 +46,7 @@ Output::
 
 ======== Resolving type reference directive 'sometype', containing file '/src/packages/__inferred type names__.ts', root directory '/src/packages/typeroot1'. ========
 Resolving with primary search path '/src/packages/typeroot1'.
+File '/src/packages/typeroot1/sometype.d.ts' does not exist.
 File '/src/packages/typeroot1/sometype/package.json' does not exist.
 File '/src/packages/typeroot1/sometype/index.d.ts' exist - use it as a name resolution result.
 Resolving real path for '/src/packages/typeroot1/sometype/index.d.ts', result '/src/packages/typeroot1/sometype/index.d.ts'.
@@ -56,6 +57,7 @@ Resolving real path for '/src/packages/typeroot1/sometype/index.d.ts', result '/
 
 ======== Resolving type reference directive 'sometype', containing file '/src/packages/__inferred type names__.ts', root directory '/src/packages/typeroot2'. ========
 Resolving with primary search path '/src/packages/typeroot2'.
+File '/src/packages/typeroot2/sometype.d.ts' does not exist.
 File '/src/packages/typeroot2/sometype/package.json' does not exist.
 File '/src/packages/typeroot2/sometype/index.d.ts' exist - use it as a name resolution result.
 Resolving real path for '/src/packages/typeroot2/sometype/index.d.ts', result '/src/packages/typeroot2/sometype/index.d.ts'.
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt
deleted file mode 100644
index 0e34e0fcb8190..0000000000000
--- a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.errors.txt
+++ /dev/null
@@ -1,17 +0,0 @@
-error TS2688: Cannot find type definition file for 'phaser'.
-  The file is in the program because:
-    Entry point of type library 'phaser' specified in compilerOptions
-/a.ts(1,1): error TS2304: Cannot find name 'a'.
-
-
-!!! error TS2688: Cannot find type definition file for 'phaser'.
-!!! error TS2688:   The file is in the program because:
-!!! error TS2688:     Entry point of type library 'phaser' specified in compilerOptions
-==== /a.ts (1 errors) ====
-    a;
-    ~
-!!! error TS2304: Cannot find name 'a'.
-    
-==== /node_modules/phaser/types/phaser.d.ts (0 errors) ====
-    declare const a: number;
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
index e803f8614d33e..f29a1bafe2741 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.symbols
@@ -1,4 +1,8 @@
 === /a.ts ===
-
 a;
+>a : Symbol(a, Decl(phaser.d.ts, 0, 13))
+
+=== /node_modules/phaser/types/phaser.d.ts ===
+declare const a: number;
+>a : Symbol(a, Decl(phaser.d.ts, 0, 13))
 
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
index e3c356a07350d..7bd67878a222f 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.trace.json
@@ -1,10 +1,8 @@
 [
     "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/node_modules/phaser/types'. ========",
     "Resolving with primary search path '/node_modules/phaser/types'.",
-    "Looking up in 'node_modules' folder, initial location '/'.",
+    "File '/node_modules/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
     "File '/node_modules/phaser/package.json' does not exist.",
-    "File '/node_modules/phaser.d.ts' does not exist.",
-    "File '/node_modules/phaser/index.d.ts' does not exist.",
-    "Directory '/node_modules/@types' does not exist, skipping all lookups in it.",
-    "======== Type reference directive 'phaser' was not resolved. ========"
+    "Resolving real path for '/node_modules/phaser/types/phaser.d.ts', result '/node_modules/phaser/types/phaser.d.ts'.",
+    "======== Type reference directive 'phaser' was successfully resolved to '/node_modules/phaser/types/phaser.d.ts', primary: true. ========"
 ]
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
index 2ec6ffcf1be41..20416fc921d6d 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
+++ b/tests/baselines/reference/typeReferenceDirectiveWithTypeAsFile.types
@@ -1,4 +1,8 @@
 === /a.ts ===
 a;
->a : any
+>a : number
+
+=== /node_modules/phaser/types/phaser.d.ts ===
+declare const a: number;
+>a : number
 
diff --git a/tests/baselines/reference/typeReferenceDirectives1.trace.json b/tests/baselines/reference/typeReferenceDirectives1.trace.json
index 8be3b668a2bd8..66ae0a4816bd9 100644
--- a/tests/baselines/reference/typeReferenceDirectives1.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives1.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives10.trace.json b/tests/baselines/reference/typeReferenceDirectives10.trace.json
index 7d52d66a6b411..bd94becc638fc 100644
--- a/tests/baselines/reference/typeReferenceDirectives10.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives10.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives11.trace.json b/tests/baselines/reference/typeReferenceDirectives11.trace.json
index 38aa6ed8a53b2..12a5a19486c37 100644
--- a/tests/baselines/reference/typeReferenceDirectives11.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives11.trace.json
@@ -6,6 +6,7 @@
     "======== Module name './mod1' was successfully resolved to '/mod1.ts'. ========",
     "======== Resolving type reference directive 'lib', containing file '/__inferred type names__.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives12.trace.json b/tests/baselines/reference/typeReferenceDirectives12.trace.json
index cd97596ba13b8..253ad31734b65 100644
--- a/tests/baselines/reference/typeReferenceDirectives12.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives12.trace.json
@@ -11,6 +11,7 @@
     "======== Module name './mod1' was successfully resolved to '/mod1.ts'. ========",
     "======== Resolving type reference directive 'lib', containing file '/mod1.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives13.trace.json b/tests/baselines/reference/typeReferenceDirectives13.trace.json
index 7d52d66a6b411..bd94becc638fc 100644
--- a/tests/baselines/reference/typeReferenceDirectives13.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives13.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives2.trace.json b/tests/baselines/reference/typeReferenceDirectives2.trace.json
index 47ae2761584fe..9d997c946407c 100644
--- a/tests/baselines/reference/typeReferenceDirectives2.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives2.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/__inferred type names__.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives3.trace.json b/tests/baselines/reference/typeReferenceDirectives3.trace.json
index 8be3b668a2bd8..66ae0a4816bd9 100644
--- a/tests/baselines/reference/typeReferenceDirectives3.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives3.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives4.trace.json b/tests/baselines/reference/typeReferenceDirectives4.trace.json
index 8be3b668a2bd8..66ae0a4816bd9 100644
--- a/tests/baselines/reference/typeReferenceDirectives4.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives4.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives5.trace.json b/tests/baselines/reference/typeReferenceDirectives5.trace.json
index 7d52d66a6b411..bd94becc638fc 100644
--- a/tests/baselines/reference/typeReferenceDirectives5.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives5.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives6.trace.json b/tests/baselines/reference/typeReferenceDirectives6.trace.json
index 8be3b668a2bd8..66ae0a4816bd9 100644
--- a/tests/baselines/reference/typeReferenceDirectives6.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives6.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives7.trace.json b/tests/baselines/reference/typeReferenceDirectives7.trace.json
index 8be3b668a2bd8..66ae0a4816bd9 100644
--- a/tests/baselines/reference/typeReferenceDirectives7.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives7.trace.json
@@ -1,6 +1,7 @@
 [
     "======== Resolving type reference directive 'lib', containing file '/app.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives8.trace.json b/tests/baselines/reference/typeReferenceDirectives8.trace.json
index 38aa6ed8a53b2..12a5a19486c37 100644
--- a/tests/baselines/reference/typeReferenceDirectives8.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives8.trace.json
@@ -6,6 +6,7 @@
     "======== Module name './mod1' was successfully resolved to '/mod1.ts'. ========",
     "======== Resolving type reference directive 'lib', containing file '/__inferred type names__.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",
diff --git a/tests/baselines/reference/typeReferenceDirectives9.trace.json b/tests/baselines/reference/typeReferenceDirectives9.trace.json
index cd97596ba13b8..253ad31734b65 100644
--- a/tests/baselines/reference/typeReferenceDirectives9.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectives9.trace.json
@@ -11,6 +11,7 @@
     "======== Module name './mod1' was successfully resolved to '/mod1.ts'. ========",
     "======== Resolving type reference directive 'lib', containing file '/mod1.ts', root directory '/types'. ========",
     "Resolving with primary search path '/types'.",
+    "File '/types/lib.d.ts' does not exist.",
     "File '/types/lib/package.json' does not exist.",
     "File '/types/lib/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/types/lib/index.d.ts', result '/types/lib/index.d.ts'.",

From 4ea628e90723738b9d13e4048ff1febc6e86cf22 Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 21:25:39 -0800
Subject: [PATCH 3/6] Test to show even when typeRoots are specified,
 resolution falls back to node_modules in nearest directory

---
 ...eReferenceDirectiveWithFailedFromTypeRoot.js | 16 ++++++++++++++++
 ...renceDirectiveWithFailedFromTypeRoot.symbols |  8 ++++++++
 ...ceDirectiveWithFailedFromTypeRoot.trace.json | 14 ++++++++++++++
 ...ferenceDirectiveWithFailedFromTypeRoot.types |  8 ++++++++
 ...eReferenceDirectiveWithFailedFromTypeRoot.ts | 17 +++++++++++++++++
 5 files changed, 63 insertions(+)
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.js
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
 create mode 100644 tests/cases/compiler/typeReferenceDirectiveWithFailedFromTypeRoot.ts

diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.js b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.js
new file mode 100644
index 0000000000000..ca6fb691a224b
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.js
@@ -0,0 +1,16 @@
+//// [tests/cases/compiler/typeReferenceDirectiveWithFailedFromTypeRoot.ts] ////
+
+//// [dummy.d.ts]
+declare const a2: number;
+
+//// [phaser.d.ts]
+declare const a: number;
+
+//// [package.json]
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+//// [a.ts]
+a;
+
+//// [a.js]
+a;
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
new file mode 100644
index 0000000000000..f29a1bafe2741
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
@@ -0,0 +1,8 @@
+=== /a.ts ===
+a;
+>a : Symbol(a, Decl(phaser.d.ts, 0, 13))
+
+=== /node_modules/phaser/types/phaser.d.ts ===
+declare const a: number;
+>a : Symbol(a, Decl(phaser.d.ts, 0, 13))
+
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
new file mode 100644
index 0000000000000..3374d83d78e5b
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
@@ -0,0 +1,14 @@
+[
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
+    "Resolving with primary search path '/typings'.",
+    "File '/typings/phaser.d.ts' does not exist.",
+    "Looking up in 'node_modules' folder, initial location '/'.",
+    "Found 'package.json' at '/node_modules/phaser/package.json'.",
+    "'package.json' does not have a 'typesVersions' field.",
+    "File '/node_modules/phaser.d.ts' does not exist.",
+    "'package.json' does not have a 'typings' field.",
+    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/node_modules/phaser/types/phaser.d.ts'.",
+    "File '/node_modules/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
+    "Resolving real path for '/node_modules/phaser/types/phaser.d.ts', result '/node_modules/phaser/types/phaser.d.ts'.",
+    "======== Type reference directive 'phaser' was successfully resolved to '/node_modules/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: false. ========"
+]
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
new file mode 100644
index 0000000000000..20416fc921d6d
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
@@ -0,0 +1,8 @@
+=== /a.ts ===
+a;
+>a : number
+
+=== /node_modules/phaser/types/phaser.d.ts ===
+declare const a: number;
+>a : number
+
diff --git a/tests/cases/compiler/typeReferenceDirectiveWithFailedFromTypeRoot.ts b/tests/cases/compiler/typeReferenceDirectiveWithFailedFromTypeRoot.ts
new file mode 100644
index 0000000000000..eec8f38a6dd8f
--- /dev/null
+++ b/tests/cases/compiler/typeReferenceDirectiveWithFailedFromTypeRoot.ts
@@ -0,0 +1,17 @@
+// @noImplicitReferences: true
+// @typeRoots: /typings
+// @types: phaser
+// @traceResolution: true
+// @currentDirectory: /
+
+// @Filename: /typings/dummy.d.ts
+declare const a2: number;
+
+// @Filename: /node_modules/phaser/types/phaser.d.ts
+declare const a: number;
+
+// @Filename: /node_modules/phaser/package.json
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+// @Filename: /a.ts
+a;
\ No newline at end of file

From 40bb75c8f5273d5cd379c97cb683f08a04947b58 Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 21:50:28 -0800
Subject: [PATCH 4/6] Auto type reference directive shouldnt lookup in
 node_modules Fixes #37708 Bug 1 part of the issue

---
 src/compiler/diagnosticMessages.json          |   4 +
 src/compiler/moduleNameResolver.ts            |  41 +++---
 src/compiler/resolutionCache.ts               |  53 ++++----
 src/compiler/types.ts                         |   1 -
 src/server/project.ts                         |   2 +-
 .../unittests/tscWatch/programUpdates.ts      |  54 ++++----
 .../unittests/tsserver/resolutionCache.ts     |  47 ++++---
 .../reference/api/tsserverlibrary.d.ts        |   1 -
 tests/baselines/reference/api/typescript.d.ts |   1 -
 .../reference/library-reference-11.trace.json |   5 +-
 .../reference/library-reference-12.trace.json |   5 +-
 .../reference/library-reference-3.trace.json  |   6 +-
 .../reference/library-reference-7.trace.json  |   5 +-
 ...onWithSymlinks_preserveSymlinks.trace.json |   6 +-
 .../nodeModulesAtTypesPriority.trace.json     |  10 +-
 ...iffers-between-projects-for-shared-file.js |  10 +-
 .../with-nodeNext-resolution.js               |   4 +-
 .../type-reference-resolutions-reuse.js       |  28 ++--
 ...-from-config-file-path-if-config-exists.js |   4 +-
 ...exists-but-does-not-specifies-typeRoots.js |  75 ++++++++++
 .../reusing-type-ref-resolution.js            |  21 ++-
 ...-file-with-case-insensitive-file-system.js | 128 +++++++++---------
 ...ig-file-with-case-sensitive-file-system.js | 128 +++++++++---------
 ...-from-config-file-path-if-config-exists.js |  61 +++++++++
 ...exists-but-does-not-specifies-typeRoots.js |  55 ++++++++
 ...DirectiveWithFailedFromTypeRoot.errors.txt |  22 +++
 ...nceDirectiveWithFailedFromTypeRoot.symbols |   7 +-
 ...DirectiveWithFailedFromTypeRoot.trace.json |  11 +-
 ...renceDirectiveWithFailedFromTypeRoot.types |   6 +-
 ...mMultipleNodeModulesDirectories.trace.json |  15 +-
 ...romNodeModulesInParentDirectory.trace.json |   5 +-
 31 files changed, 527 insertions(+), 294 deletions(-)
 create mode 100644 tests/baselines/reference/tscWatch/programUpdates/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
 create mode 100644 tests/baselines/reference/tsserver/resolutionCache/types-should-load-from-config-file-path-if-config-exists.js
 create mode 100644 tests/baselines/reference/tsserver/resolutionCache/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
 create mode 100644 tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.errors.txt

diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index e146cce88c8cb..33f81cc7940c9 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -5154,6 +5154,10 @@
         "category": "Message",
         "code": 6261
     },
+    "Resolving type reference directive for program that specifies custom typeRoots, skipping lookup in 'node_modules' folder.": {
+        "category": "Message",
+        "code": 6262
+    },
 
     "Directory '{0}' has no containing package.json scope. Imports will not resolve.": {
         "category": "Message",
diff --git a/src/compiler/moduleNameResolver.ts b/src/compiler/moduleNameResolver.ts
index f187609b249b2..a2d184c9b59a9 100644
--- a/src/compiler/moduleNameResolver.ts
+++ b/src/compiler/moduleNameResolver.ts
@@ -54,6 +54,7 @@ import {
     hasProperty,
     hasTrailingDirectorySeparator,
     hostGetCanonicalFileName,
+    inferredTypesContainingFile,
     isArray,
     isExternalModuleNameRelative,
     isRootedDiskPath,
@@ -396,7 +397,7 @@ export function getEffectiveTypeRoots(options: CompilerOptions, host: GetEffecti
     }
 
     if (currentDirectory !== undefined) {
-        return getDefaultTypeRoots(currentDirectory, host);
+        return getDefaultTypeRoots(currentDirectory);
     }
 }
 
@@ -404,19 +405,11 @@ export function getEffectiveTypeRoots(options: CompilerOptions, host: GetEffecti
  * Returns the path to every node_modules/@types directory from some ancestor directory.
  * Returns undefined if there are none.
  */
-function getDefaultTypeRoots(currentDirectory: string, host: { directoryExists?: (directoryName: string) => boolean }): string[] | undefined {
-    if (!host.directoryExists) {
-        return [combinePaths(currentDirectory, nodeModulesAtTypes)];
-        // And if it doesn't exist, tough.
-    }
-
+function getDefaultTypeRoots(currentDirectory: string): string[] | undefined {
     let typeRoots: string[] | undefined;
     forEachAncestorDirectory(normalizePath(currentDirectory), directory => {
         const atTypes = combinePaths(directory, nodeModulesAtTypes);
-        if (host.directoryExists!(atTypes)) {
-            (typeRoots || (typeRoots = [])).push(atTypes);
-        }
-        return undefined;
+        (typeRoots ??= []).push(atTypes);
     });
     return typeRoots;
 }
@@ -576,20 +569,24 @@ export function resolveTypeReferenceDirective(typeReferenceDirectiveName: string
 
     function secondaryLookup(): PathAndPackageId | undefined {
         const initialLocationForSecondaryLookup = containingFile && getDirectoryPath(containingFile);
-
         if (initialLocationForSecondaryLookup !== undefined) {
-            // check secondary locations
-            if (traceEnabled) {
-                trace(host, Diagnostics.Looking_up_in_node_modules_folder_initial_location_0, initialLocationForSecondaryLookup);
-            }
             let result: Resolved | undefined;
-            if (!isExternalModuleNameRelative(typeReferenceDirectiveName)) {
-                const searchResult = loadModuleFromNearestNodeModulesDirectory(Extensions.Declaration, typeReferenceDirectiveName, initialLocationForSecondaryLookup, moduleResolutionState, /*cache*/ undefined, /*redirectedReference*/ undefined);
-                result = searchResult && searchResult.value;
+            if (!options.typeRoots || !endsWith(containingFile!, inferredTypesContainingFile)) {
+                // check secondary locations
+                if (traceEnabled) {
+                    trace(host, Diagnostics.Looking_up_in_node_modules_folder_initial_location_0, initialLocationForSecondaryLookup);
+                }
+                if (!isExternalModuleNameRelative(typeReferenceDirectiveName)) {
+                    const searchResult = loadModuleFromNearestNodeModulesDirectory(Extensions.Declaration, typeReferenceDirectiveName, initialLocationForSecondaryLookup, moduleResolutionState, /*cache*/ undefined, /*redirectedReference*/ undefined);
+                    result = searchResult && searchResult.value;
+                }
+                else {
+                    const { path: candidate } = normalizePathForCJSResolution(initialLocationForSecondaryLookup, typeReferenceDirectiveName);
+                    result = nodeLoadModuleByRelativeName(Extensions.Declaration, candidate, /*onlyRecordFailures*/ false, moduleResolutionState, /*considerPackageJson*/ true);
+                }
             }
-            else {
-                const { path: candidate } = normalizePathForCJSResolution(initialLocationForSecondaryLookup, typeReferenceDirectiveName);
-                result = nodeLoadModuleByRelativeName(Extensions.Declaration, candidate, /*onlyRecordFailures*/ false, moduleResolutionState, /*considerPackageJson*/ true);
+            else if (traceEnabled) {
+                trace(host, Diagnostics.Resolving_type_reference_directive_for_program_that_specifies_custom_typeRoots_skipping_lookup_in_node_modules_folder);
             }
             return resolvedTypeScriptOnly(result);
         }
diff --git a/src/compiler/resolutionCache.ts b/src/compiler/resolutionCache.ts
index 90c45fc4ecf41..bc86cf2cdf446 100644
--- a/src/compiler/resolutionCache.ts
+++ b/src/compiler/resolutionCache.ts
@@ -1157,26 +1157,28 @@ export function createResolutionCache(resolutionHost: ResolutionCacheHost, rootD
 
     function createTypeRootsWatch(typeRootPath: Path, typeRoot: string): FileWatcher {
         // Create new watch and recursive info
-        return resolutionHost.watchTypeRootsDirectory(typeRoot, fileOrDirectory => {
-            const fileOrDirectoryPath = resolutionHost.toPath(fileOrDirectory);
-            if (cachedDirectoryStructureHost) {
-                // Since the file existence changed, update the sourceFiles cache
-                cachedDirectoryStructureHost.addOrDeleteFileOrDirectory(fileOrDirectory, fileOrDirectoryPath);
-            }
-
-            // For now just recompile
-            // We could potentially store more data here about whether it was/would be really be used or not
-            // and with that determine to trigger compilation but for now this is enough
-            hasChangedAutomaticTypeDirectiveNames = true;
-            resolutionHost.onChangedAutomaticTypeDirectiveNames();
+        return canWatchTypeRootPath(typeRootPath) ?
+            resolutionHost.watchTypeRootsDirectory(typeRoot, fileOrDirectory => {
+                const fileOrDirectoryPath = resolutionHost.toPath(fileOrDirectory);
+                if (cachedDirectoryStructureHost) {
+                    // Since the file existence changed, update the sourceFiles cache
+                    cachedDirectoryStructureHost.addOrDeleteFileOrDirectory(fileOrDirectory, fileOrDirectoryPath);
+                }
 
-            // Since directory watchers invoked are flaky, the failed lookup location events might not be triggered
-            // So handle to failed lookup locations here as well to ensure we are invalidating resolutions
-            const dirPath = getDirectoryToWatchFailedLookupLocationFromTypeRoot(typeRoot, typeRootPath);
-            if (dirPath) {
-                scheduleInvalidateResolutionOfFailedLookupLocation(fileOrDirectoryPath, dirPath === fileOrDirectoryPath);
-            }
-        }, WatchDirectoryFlags.Recursive);
+                // For now just recompile
+                // We could potentially store more data here about whether it was/would be really be used or not
+                // and with that determine to trigger compilation but for now this is enough
+                hasChangedAutomaticTypeDirectiveNames = true;
+                resolutionHost.onChangedAutomaticTypeDirectiveNames();
+
+                // Since directory watchers invoked are flaky, the failed lookup location events might not be triggered
+                // So handle to failed lookup locations here as well to ensure we are invalidating resolutions
+                const dirPath = getDirectoryToWatchFailedLookupLocationFromTypeRoot(typeRoot, typeRootPath);
+                if (dirPath) {
+                    scheduleInvalidateResolutionOfFailedLookupLocation(fileOrDirectoryPath, dirPath === fileOrDirectoryPath);
+                }
+            }, WatchDirectoryFlags.Recursive) :
+            noopFileWatcher;
     }
 
     /**
@@ -1194,7 +1196,7 @@ export function createResolutionCache(resolutionHost: ResolutionCacheHost, rootD
 
         // we need to assume the directories exist to ensure that we can get all the type root directories that get included
         // But filter directories that are at root level to say directory doesnt exist, so that we arent watching them
-        const typeRoots = getEffectiveTypeRoots(options, { directoryExists: directoryExistsForTypeRootWatch, getCurrentDirectory });
+        const typeRoots = getEffectiveTypeRoots(options, { getCurrentDirectory });
         if (typeRoots) {
             mutateMap(
                 typeRootsWatches,
@@ -1210,12 +1212,11 @@ export function createResolutionCache(resolutionHost: ResolutionCacheHost, rootD
         }
     }
 
-    /**
-     * Use this function to return if directory exists to get type roots to watch
-     * If we return directory exists then only the paths will be added to type roots
-     * Hence return true for all directories except root directories which are filtered from watching
-     */
-    function directoryExistsForTypeRootWatch(nodeTypesDirectory: string) {
+    function canWatchTypeRootPath(nodeTypesDirectory: string) {
+        // If type roots is specified, watch that path
+        if (resolutionHost.getCompilationSettings().typeRoots) return true;
+
+        // Otherwise can watch directory only if we can watch the parent directory of node_modules/@types
         const dir = getDirectoryPath(getDirectoryPath(nodeTypesDirectory));
         const dirPath = resolutionHost.toPath(dir);
         return dirPath === rootPath || canWatchDirectoryOrFile(dirPath);
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 7ce54d3dd6c02..d8da069b73824 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -9049,7 +9049,6 @@ export interface EmitTextWriter extends SymbolWriter {
 }
 
 export interface GetEffectiveTypeRootsHost {
-    directoryExists?(directoryName: string): boolean;
     getCurrentDirectory?(): string;
 }
 
diff --git a/src/server/project.ts b/src/server/project.ts
index dcce4777002b2..c1e1e4cb2490c 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -2825,7 +2825,7 @@ export class ConfiguredProject extends Project {
     }
 
     getEffectiveTypeRoots() {
-        return getEffectiveTypeRoots(this.getCompilationSettings(), this.directoryStructureHost) || [];
+        return getEffectiveTypeRoots(this.getCompilationSettings(), this) || [];
     }
 
     /** @internal */
diff --git a/src/testRunner/unittests/tscWatch/programUpdates.ts b/src/testRunner/unittests/tscWatch/programUpdates.ts
index ff58abc4c85ce..633a33935068b 100644
--- a/src/testRunner/unittests/tscWatch/programUpdates.ts
+++ b/src/testRunner/unittests/tscWatch/programUpdates.ts
@@ -937,29 +937,37 @@ declare const eval: any`
         ]
     });
 
-    verifyTscWatch({
-        scenario,
-        subScenario: "types should load from config file path if config exists",
-        commandLineArgs: ["-w", "-p", configFilePath],
-        sys: () => {
-            const f1 = {
-                path: "/a/b/app.ts",
-                content: "let x = 1"
-            };
-            const config = {
-                path: configFilePath,
-                content: JSON.stringify({ compilerOptions: { types: ["node"], typeRoots: [] } })
-            };
-            const node = {
-                path: "/a/b/node_modules/@types/node/index.d.ts",
-                content: "declare var process: any"
-            };
-            const cwd = {
-                path: "/a/c"
-            };
-            return createWatchedSystem([f1, config, node, cwd, libFile], { currentDirectory: cwd.path });
-        },
-        changes: ts.emptyArray
+    describe("types from config file", () => {
+        function verifyTypesLoad(includeTypeRoots: boolean) {
+            verifyTscWatch({
+                scenario,
+                subScenario: includeTypeRoots ?
+                    "types should not load from config file path if config exists but does not specifies typeRoots" :
+                    "types should load from config file path if config exists",
+                commandLineArgs: ["-w", "-p", configFilePath],
+                sys: () => {
+                    const f1 = {
+                        path: "/a/b/app.ts",
+                        content: "let x = 1"
+                    };
+                    const config = {
+                        path: configFilePath,
+                        content: JSON.stringify({ compilerOptions: { types: ["node"], typeRoots: includeTypeRoots ? [] : undefined } })
+                    };
+                    const node = {
+                        path: "/a/b/node_modules/@types/node/index.d.ts",
+                        content: "declare var process: any"
+                    };
+                    const cwd = {
+                        path: "/a/c"
+                    };
+                    return createWatchedSystem([f1, config, node, cwd, libFile], { currentDirectory: cwd.path });
+                },
+                changes: ts.emptyArray
+            });
+        }
+        verifyTypesLoad(/*includeTypeRoots*/ false);
+        verifyTypesLoad(/*includeTypeRoots*/ true);
     });
 
     verifyTscWatch({
diff --git a/src/testRunner/unittests/tsserver/resolutionCache.ts b/src/testRunner/unittests/tsserver/resolutionCache.ts
index 29e9f7b33339a..3558f19aac898 100644
--- a/src/testRunner/unittests/tsserver/resolutionCache.ts
+++ b/src/testRunner/unittests/tsserver/resolutionCache.ts
@@ -345,27 +345,32 @@ describe("unittests:: tsserver:: resolutionCache:: tsserverProjectSystem rename
         projectService.checkNumberOfProjects({ configuredProjects: 1 });
     });
 
-    it("types should load from config file path if config exists", () => {
-        const f1 = {
-            path: "/a/b/app.ts",
-            content: "let x = 1"
-        };
-        const config = {
-            path: "/a/b/tsconfig.json",
-            content: JSON.stringify({ compilerOptions: { types: ["node"], typeRoots: [] } })
-        };
-        const node = {
-            path: "/a/b/node_modules/@types/node/index.d.ts",
-            content: "declare var process: any"
-        };
-        const cwd = {
-            path: "/a/c"
-        };
-        const host = createServerHost([f1, config, node, cwd], { currentDirectory: cwd.path });
-        const projectService = createProjectService(host);
-        projectService.openClientFile(f1.path);
-        projectService.checkNumberOfProjects({ configuredProjects: 1 });
-        checkProjectActualFiles(configuredProjectAt(projectService, 0), [f1.path, node.path, config.path]);
+    describe("types from config file", () => {
+        function verifyTypesLoad(subScenario: string, includeTypeRoots: boolean) {
+            it(subScenario, () => {
+                const f1 = {
+                    path: "/a/b/app.ts",
+                    content: "let x = 1"
+                };
+                const config = {
+                    path: "/a/b/tsconfig.json",
+                    content: JSON.stringify({ compilerOptions: { types: ["node"], typeRoots: includeTypeRoots ? [] : undefined } })
+                };
+                const node = {
+                    path: "/a/b/node_modules/@types/node/index.d.ts",
+                    content: "declare var process: any"
+                };
+                const cwd = {
+                    path: "/a/c"
+                };
+                const host = createServerHost([f1, config, node, cwd], { currentDirectory: cwd.path });
+                const projectService = createProjectService(host, { logger: createLoggerWithInMemoryLogs(host) });
+                projectService.openClientFile(f1.path);
+                baselineTsserverLogs("resolutionCache", subScenario, projectService);
+            });
+        }
+        verifyTypesLoad("types should load from config file path if config exists", /*includeTypeRoots*/ false);
+        verifyTypesLoad("types should not load from config file path if config exists but does not specifies typeRoots", /*includeTypeRoots*/ true);
     });
 });
 
diff --git a/tests/baselines/reference/api/tsserverlibrary.d.ts b/tests/baselines/reference/api/tsserverlibrary.d.ts
index e3e8466ccd1e7..c1b613727b0bb 100644
--- a/tests/baselines/reference/api/tsserverlibrary.d.ts
+++ b/tests/baselines/reference/api/tsserverlibrary.d.ts
@@ -8258,7 +8258,6 @@ declare namespace ts {
         noEmitHelpers?: boolean;
     }
     interface GetEffectiveTypeRootsHost {
-        directoryExists?(directoryName: string): boolean;
         getCurrentDirectory?(): string;
     }
     interface TextSpan {
diff --git a/tests/baselines/reference/api/typescript.d.ts b/tests/baselines/reference/api/typescript.d.ts
index 7bc06c330da8a..048facf320bcf 100644
--- a/tests/baselines/reference/api/typescript.d.ts
+++ b/tests/baselines/reference/api/typescript.d.ts
@@ -4322,7 +4322,6 @@ declare namespace ts {
         noEmitHelpers?: boolean;
     }
     interface GetEffectiveTypeRootsHost {
-        directoryExists?(directoryName: string): boolean;
         getCurrentDirectory?(): string;
     }
     interface TextSpan {
diff --git a/tests/baselines/reference/library-reference-11.trace.json b/tests/baselines/reference/library-reference-11.trace.json
index b2121f15d5de8..7ff9d88916379 100644
--- a/tests/baselines/reference/library-reference-11.trace.json
+++ b/tests/baselines/reference/library-reference-11.trace.json
@@ -1,6 +1,7 @@
 [
-    "======== Resolving type reference directive 'jquery', containing file '/a/b/consumer.ts', root directory not set. ========",
-    "Root directory cannot be determined, skipping primary search paths.",
+    "======== Resolving type reference directive 'jquery', containing file '/a/b/consumer.ts', root directory '/node_modules/@types'. ========",
+    "Resolving with primary search path '/node_modules/@types'.",
+    "Directory '/node_modules/@types' does not exist, skipping all lookups in it.",
     "Looking up in 'node_modules' folder, initial location '/a/b'.",
     "Directory '/a/b/node_modules' does not exist, skipping all lookups in it.",
     "Found 'package.json' at '/a/node_modules/jquery/package.json'.",
diff --git a/tests/baselines/reference/library-reference-12.trace.json b/tests/baselines/reference/library-reference-12.trace.json
index 0ff14204c620b..96d9b82fce124 100644
--- a/tests/baselines/reference/library-reference-12.trace.json
+++ b/tests/baselines/reference/library-reference-12.trace.json
@@ -1,6 +1,7 @@
 [
-    "======== Resolving type reference directive 'jquery', containing file '/a/b/consumer.ts', root directory not set. ========",
-    "Root directory cannot be determined, skipping primary search paths.",
+    "======== Resolving type reference directive 'jquery', containing file '/a/b/consumer.ts', root directory '/node_modules/@types'. ========",
+    "Resolving with primary search path '/node_modules/@types'.",
+    "Directory '/node_modules/@types' does not exist, skipping all lookups in it.",
     "Looking up in 'node_modules' folder, initial location '/a/b'.",
     "Directory '/a/b/node_modules' does not exist, skipping all lookups in it.",
     "Found 'package.json' at '/a/node_modules/jquery/package.json'.",
diff --git a/tests/baselines/reference/library-reference-3.trace.json b/tests/baselines/reference/library-reference-3.trace.json
index 5b084f1373841..a848ff635c233 100644
--- a/tests/baselines/reference/library-reference-3.trace.json
+++ b/tests/baselines/reference/library-reference-3.trace.json
@@ -1,6 +1,8 @@
 [
-    "======== Resolving type reference directive 'jquery', containing file '/src/consumer.ts', root directory not set. ========",
-    "Root directory cannot be determined, skipping primary search paths.",
+    "======== Resolving type reference directive 'jquery', containing file '/src/consumer.ts', root directory '/src/node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path '/src/node_modules/@types, /node_modules/@types'.",
+    "Directory '/src/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 '/src'.",
     "File '/src/node_modules/jquery/package.json' does not exist.",
     "File '/src/node_modules/jquery.d.ts' does not exist.",
diff --git a/tests/baselines/reference/library-reference-7.trace.json b/tests/baselines/reference/library-reference-7.trace.json
index 5b084f1373841..ccf7fbd91943a 100644
--- a/tests/baselines/reference/library-reference-7.trace.json
+++ b/tests/baselines/reference/library-reference-7.trace.json
@@ -1,6 +1,7 @@
 [
-    "======== Resolving type reference directive 'jquery', containing file '/src/consumer.ts', root directory not set. ========",
-    "Root directory cannot be determined, skipping primary search paths.",
+    "======== Resolving type reference directive 'jquery', containing file '/src/consumer.ts', root directory '/node_modules/@types'. ========",
+    "Resolving with primary search path '/node_modules/@types'.",
+    "Directory '/node_modules/@types' does not exist, skipping all lookups in it.",
     "Looking up in 'node_modules' folder, initial location '/src'.",
     "File '/src/node_modules/jquery/package.json' does not exist.",
     "File '/src/node_modules/jquery.d.ts' does not exist.",
diff --git a/tests/baselines/reference/moduleResolutionWithSymlinks_preserveSymlinks.trace.json b/tests/baselines/reference/moduleResolutionWithSymlinks_preserveSymlinks.trace.json
index f45e3ce16dc27..bed2470cb0189 100644
--- a/tests/baselines/reference/moduleResolutionWithSymlinks_preserveSymlinks.trace.json
+++ b/tests/baselines/reference/moduleResolutionWithSymlinks_preserveSymlinks.trace.json
@@ -1,6 +1,8 @@
 [
-    "======== Resolving type reference directive 'linked', containing file '/app/app.ts', root directory not set. ========",
-    "Root directory cannot be determined, skipping primary search paths.",
+    "======== Resolving type reference directive 'linked', containing file '/app/app.ts', root directory 'node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path 'node_modules/@types, /node_modules/@types'.",
+    "Directory '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 '/app'.",
     "File '/app/node_modules/linked/package.json' does not exist.",
     "File '/app/node_modules/linked.d.ts' does not exist.",
diff --git a/tests/baselines/reference/nodeModulesAtTypesPriority.trace.json b/tests/baselines/reference/nodeModulesAtTypesPriority.trace.json
index 99f4fb69909e1..181007b461424 100644
--- a/tests/baselines/reference/nodeModulesAtTypesPriority.trace.json
+++ b/tests/baselines/reference/nodeModulesAtTypesPriority.trace.json
@@ -55,14 +55,16 @@
     "File '/packages/a/node_modules/redux/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/packages/a/node_modules/redux/index.d.ts', result '/packages/a/node_modules/redux/index.d.ts'.",
     "======== Module name 'redux' was successfully resolved to '/packages/a/node_modules/redux/index.d.ts'. ========",
-    "======== Resolving type reference directive 'react', containing file '__inferred type names__.ts', root directory '/node_modules/@types'. ========",
-    "Resolving with primary search path '/node_modules/@types'.",
+    "======== Resolving type reference directive 'react', containing file '__inferred type names__.ts', root directory 'node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path 'node_modules/@types, /node_modules/@types'.",
+    "Directory 'node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/node_modules/@types/react/package.json' does not exist according to earlier cached lookups.",
     "File '/node_modules/@types/react/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/node_modules/@types/react/index.d.ts', result '/node_modules/@types/react/index.d.ts'.",
     "======== Type reference directive 'react' was successfully resolved to '/node_modules/@types/react/index.d.ts', primary: true. ========",
-    "======== Resolving type reference directive 'redux', containing file '__inferred type names__.ts', root directory '/node_modules/@types'. ========",
-    "Resolving with primary search path '/node_modules/@types'.",
+    "======== Resolving type reference directive 'redux', containing file '__inferred type names__.ts', root directory 'node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path 'node_modules/@types, /node_modules/@types'.",
+    "Directory 'node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/node_modules/@types/redux/package.json' does not exist according to earlier cached lookups.",
     "File '/node_modules/@types/redux/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/node_modules/@types/redux/index.d.ts', result '/node_modules/@types/redux/index.d.ts'.",
diff --git a/tests/baselines/reference/tsbuild/moduleResolution/impliedNodeFormat-differs-between-projects-for-shared-file.js b/tests/baselines/reference/tsbuild/moduleResolution/impliedNodeFormat-differs-between-projects-for-shared-file.js
index 91ca1d745305c..7b9ce35b75ee6 100644
--- a/tests/baselines/reference/tsbuild/moduleResolution/impliedNodeFormat-differs-between-projects-for-shared-file.js
+++ b/tests/baselines/reference/tsbuild/moduleResolution/impliedNodeFormat-differs-between-projects-for-shared-file.js
@@ -62,8 +62,9 @@ Output::
 
 [12:00:24 AM] Building project '/src/projects/a/tsconfig.json'...
 
-======== Resolving type reference directive 'pg', containing file '/src/projects/a/__inferred type names__.ts', root directory '/src/projects/node_modules/@types'. ========
-Resolving with primary search path '/src/projects/node_modules/@types'.
+======== Resolving type reference directive 'pg', containing file '/src/projects/a/__inferred type names__.ts', root directory '/src/projects/a/node_modules/@types,/src/projects/node_modules/@types,/src/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/src/projects/a/node_modules/@types, /src/projects/node_modules/@types, /src/node_modules/@types, /node_modules/@types'.
+Directory '/src/projects/a/node_modules/@types' does not exist, skipping all lookups in it.
 Found 'package.json' at '/src/projects/node_modules/@types/pg/package.json'.
 'package.json' does not have a 'typesVersions' field.
 'package.json' does not have a 'typings' field.
@@ -98,8 +99,9 @@ File '/src/projects/node_modules/@types/pg/index.d.ts' exist - use it as a name
 Resolving real path for '/src/projects/node_modules/@types/pg/index.d.ts', result '/src/projects/node_modules/@types/pg/index.d.ts'.
 ======== Module name 'pg' was successfully resolved to '/src/projects/node_modules/@types/pg/index.d.ts'. ========
 File '/src/projects/node_modules/@types/pg/package.json' exists according to earlier cached lookups.
-======== Resolving type reference directive 'pg', containing file '/src/projects/b/__inferred type names__.ts', root directory '/src/projects/node_modules/@types'. ========
-Resolving with primary search path '/src/projects/node_modules/@types'.
+======== Resolving type reference directive 'pg', containing file '/src/projects/b/__inferred type names__.ts', root directory '/src/projects/b/node_modules/@types,/src/projects/node_modules/@types,/src/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/src/projects/b/node_modules/@types, /src/projects/node_modules/@types, /src/node_modules/@types, /node_modules/@types'.
+Directory '/src/projects/b/node_modules/@types' does not exist, skipping all lookups in it.
 File '/src/projects/node_modules/@types/pg/package.json' exists according to earlier cached lookups.
 'package.json' does not have a 'typings' field.
 'package.json' has 'types' field 'index.d.ts' that references '/src/projects/node_modules/@types/pg/index.d.ts'.
diff --git a/tests/baselines/reference/tscWatch/forceConsistentCasingInFileNames/with-nodeNext-resolution.js b/tests/baselines/reference/tscWatch/forceConsistentCasingInFileNames/with-nodeNext-resolution.js
index 659af38551610..5c7f342816fea 100644
--- a/tests/baselines/reference/tscWatch/forceConsistentCasingInFileNames/with-nodeNext-resolution.js
+++ b/tests/baselines/reference/tscWatch/forceConsistentCasingInFileNames/with-nodeNext-resolution.js
@@ -62,8 +62,8 @@ File '/Users/name/projects/web/node_modules/@types/yargs/index.d.ts' exist - use
 Resolving real path for '/Users/name/projects/web/node_modules/@types/yargs/index.d.ts', result '/Users/name/projects/web/node_modules/@types/yargs/index.d.ts'.
 ======== Module name 'yargs' was successfully resolved to '/Users/name/projects/web/node_modules/@types/yargs/index.d.ts' with Package ID 'yargs/index.d.ts@17.0.12'. ========
 File '/Users/name/projects/web/node_modules/@types/yargs/package.json' exists according to earlier cached lookups.
-======== Resolving type reference directive 'yargs', containing file '/Users/name/projects/web/__inferred type names__.ts', root directory '/Users/name/projects/web/node_modules/@types'. ========
-Resolving with primary search path '/Users/name/projects/web/node_modules/@types'.
+======== Resolving type reference directive 'yargs', containing file '/Users/name/projects/web/__inferred type names__.ts', root directory '/Users/name/projects/web/node_modules/@types,/Users/name/projects/node_modules/@types,/Users/name/node_modules/@types,/Users/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/Users/name/projects/web/node_modules/@types, /Users/name/projects/node_modules/@types, /Users/name/node_modules/@types, /Users/node_modules/@types, /node_modules/@types'.
 File '/Users/name/projects/web/node_modules/@types/yargs/package.json' exists according to earlier cached lookups.
 'package.json' does not have a 'typesVersions' field.
 'package.json' does not have a 'typings' field.
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 cf940c33e9e8e..03a61f3598587 100644
--- a/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js
+++ b/tests/baselines/reference/tscWatch/moduleResolution/type-reference-resolutions-reuse.js
@@ -71,8 +71,12 @@ 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/index.ts', root directory '/user/username/projects/myproject/node_modules/@types'. ========
-Resolving with primary search path '/user/username/projects/myproject/node_modules/@types'.
+======== Resolving type reference directive 'pkg', containing file '/user/username/projects/myproject/index.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'.
 Found 'package.json' at '/user/username/projects/myproject/node_modules/pkg/package.json'.
 Matched 'exports' condition 'import'.
@@ -81,8 +85,12 @@ File name '/user/username/projects/myproject/node_modules/pkg/import.js' has a '
 File '/user/username/projects/myproject/node_modules/pkg/import.d.ts' exist - use it as a name resolution result.
 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'.
 ======== 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. ========
-======== Resolving type reference directive 'pkg1', containing file '/user/username/projects/myproject/index.ts', root directory '/user/username/projects/myproject/node_modules/@types'. ========
-Resolving with primary search path '/user/username/projects/myproject/node_modules/@types'.
+======== Resolving type reference directive 'pkg1', containing file '/user/username/projects/myproject/index.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'.
 Found 'package.json' at '/user/username/projects/myproject/node_modules/pkg1/package.json'.
 Saw non-matching condition 'import'.
@@ -97,8 +105,8 @@ Directory '/user/node_modules' does not exist, skipping all lookups in it.
 Directory '/node_modules' does not exist, skipping all lookups in it.
 ======== Type reference directive 'pkg1' was not resolved. ========
 File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
-======== Resolving type reference directive 'pkg2', containing file '/user/username/projects/myproject/__inferred type names__.ts', root directory '/user/username/projects/myproject/node_modules/@types'. ========
-Resolving with primary search path '/user/username/projects/myproject/node_modules/@types'.
+======== Resolving type reference directive 'pkg2', containing file '/user/username/projects/myproject/__inferred type names__.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'.
 File '/user/username/projects/myproject/node_modules/@types/pkg2/package.json' does not exist.
 File '/user/username/projects/myproject/node_modules/@types/pkg2/index.d.ts' exist - use it as a name resolution result.
 Resolving real path for '/user/username/projects/myproject/node_modules/@types/pkg2/index.d.ts', result '/user/username/projects/myproject/node_modules/@types/pkg2/index.d.ts'.
@@ -247,8 +255,12 @@ 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'. ========
-Resolving with primary search path '/user/username/projects/myproject/node_modules/@types'.
+======== 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'.
 File '/user/username/projects/myproject/node_modules/pkg/package.json' exists according to earlier cached lookups.
 Matched 'exports' condition 'import'.
diff --git a/tests/baselines/reference/tscWatch/programUpdates/types-should-load-from-config-file-path-if-config-exists.js b/tests/baselines/reference/tscWatch/programUpdates/types-should-load-from-config-file-path-if-config-exists.js
index 05d9c456981c7..f936e1d84722a 100644
--- a/tests/baselines/reference/tscWatch/programUpdates/types-should-load-from-config-file-path-if-config-exists.js
+++ b/tests/baselines/reference/tscWatch/programUpdates/types-should-load-from-config-file-path-if-config-exists.js
@@ -3,7 +3,7 @@ Input::
 let x = 1
 
 //// [/a/b/tsconfig.json]
-{"compilerOptions":{"types":["node"],"typeRoots":[]}}
+{"compilerOptions":{"types":["node"]}}
 
 //// [/a/b/node_modules/@types/node/index.d.ts]
 declare var process: any
@@ -32,7 +32,7 @@ Output::
 
 
 Program root files: ["/a/b/app.ts"]
-Program options: {"types":["node"],"typeRoots":[],"watch":true,"project":"/a/b/tsconfig.json","configFilePath":"/a/b/tsconfig.json"}
+Program options: {"types":["node"],"watch":true,"project":"/a/b/tsconfig.json","configFilePath":"/a/b/tsconfig.json"}
 Program structureReused: Not
 Program files::
 /a/lib/lib.d.ts
diff --git a/tests/baselines/reference/tscWatch/programUpdates/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js b/tests/baselines/reference/tscWatch/programUpdates/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
new file mode 100644
index 0000000000000..fd38ef9c8cc28
--- /dev/null
+++ b/tests/baselines/reference/tscWatch/programUpdates/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
@@ -0,0 +1,75 @@
+Input::
+//// [/a/b/app.ts]
+let x = 1
+
+//// [/a/b/tsconfig.json]
+{"compilerOptions":{"types":["node"],"typeRoots":[]}}
+
+//// [/a/b/node_modules/@types/node/index.d.ts]
+declare var process: any
+
+//// [/a/lib/lib.d.ts]
+/// <reference no-default-lib="true"/>
+interface Boolean {}
+interface Function {}
+interface CallableFunction {}
+interface NewableFunction {}
+interface IArguments {}
+interface Number { toExponential: any; }
+interface Object {}
+interface RegExp {}
+interface String { charAt: any; }
+interface Array<T> { length: number; [n: number]: T; }
+
+
+/a/lib/tsc.js -w -p /a/b/tsconfig.json
+Output::
+>> Screen clear
+[12:00:25 AM] Starting compilation in watch mode...
+
+error TS2688: Cannot find type definition file for 'node'.
+  The file is in the program because:
+    Entry point of type library 'node' specified in compilerOptions
+
+  ../b/tsconfig.json:1:30
+    1 {"compilerOptions":{"types":["node"],"typeRoots":[]}}
+                                   ~~~~~~
+    File is entry point of type library specified here.
+
+[12:00:28 AM] Found 1 error. Watching for file changes.
+
+
+
+Program root files: ["/a/b/app.ts"]
+Program options: {"types":["node"],"typeRoots":[],"watch":true,"project":"/a/b/tsconfig.json","configFilePath":"/a/b/tsconfig.json"}
+Program structureReused: Not
+Program files::
+/a/lib/lib.d.ts
+/a/b/app.ts
+
+No cached semantic diagnostics in the builder::
+
+Shape signatures in builder refreshed for::
+/a/lib/lib.d.ts (used version)
+/a/b/app.ts (used version)
+
+PolledWatches::
+
+FsWatches::
+/a/b/tsconfig.json:
+  {}
+/a/b/app.ts:
+  {}
+/a/lib/lib.d.ts:
+  {}
+
+FsWatchesRecursive::
+/a/b:
+  {}
+
+exitCode:: ExitStatus.undefined
+
+//// [/a/b/app.js]
+var x = 1;
+
+
diff --git a/tests/baselines/reference/tscWatch/resolutionCache/reusing-type-ref-resolution.js b/tests/baselines/reference/tscWatch/resolutionCache/reusing-type-ref-resolution.js
index 9d9b67ea03bb3..fd240c2c31756 100644
--- a/tests/baselines/reference/tscWatch/resolutionCache/reusing-type-ref-resolution.js
+++ b/tests/baselines/reference/tscWatch/resolutionCache/reusing-type-ref-resolution.js
@@ -74,16 +74,22 @@ Directory '/node_modules' does not exist, skipping all lookups in it.
 ======== Module name 'pkg1' was not resolved. ========
 FileWatcher:: Added:: WatchInfo: /src/project/node_modules/pkg0/index.d.ts 250 undefined Source file
 FileWatcher:: Added:: WatchInfo: /src/project/fileWithTypeRefs.ts 250 undefined Source file
-======== Resolving type reference directive 'pkg2', containing file '/src/project/fileWithTypeRefs.ts', root directory not set. ========
-Root directory cannot be determined, skipping primary search paths.
+======== Resolving type reference directive 'pkg2', containing file '/src/project/fileWithTypeRefs.ts', root directory '/src/project/node_modules/@types,/src/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/src/project/node_modules/@types, /src/node_modules/@types, /node_modules/@types'.
+Directory '/src/project/node_modules/@types' does not exist, skipping all lookups in it.
+Directory '/src/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 '/src/project'.
 File '/src/project/node_modules/pkg2/package.json' does not exist.
 File '/src/project/node_modules/pkg2.d.ts' does not exist.
 File '/src/project/node_modules/pkg2/index.d.ts' exist - use it as a name resolution result.
 Resolving real path for '/src/project/node_modules/pkg2/index.d.ts', result '/src/project/node_modules/pkg2/index.d.ts'.
 ======== Type reference directive 'pkg2' was successfully resolved to '/src/project/node_modules/pkg2/index.d.ts', primary: false. ========
-======== Resolving type reference directive 'pkg3', containing file '/src/project/fileWithTypeRefs.ts', root directory not set. ========
-Root directory cannot be determined, skipping primary search paths.
+======== Resolving type reference directive 'pkg3', containing file '/src/project/fileWithTypeRefs.ts', root directory '/src/project/node_modules/@types,/src/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/src/project/node_modules/@types, /src/node_modules/@types, /node_modules/@types'.
+Directory '/src/project/node_modules/@types' does not exist, skipping all lookups in it.
+Directory '/src/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 '/src/project'.
 File '/src/project/node_modules/pkg3.d.ts' does not exist.
 Directory '/src/project/node_modules/@types' does not exist, skipping all lookups in it.
@@ -566,8 +572,11 @@ CreatingProgramWith::
 Reusing resolution of module 'pkg0' from '/src/project/fileWithImports.ts' of old program, it was successfully resolved to '/src/project/node_modules/pkg0/index.d.ts'.
 Reusing resolution of module 'pkg1' from '/src/project/fileWithImports.ts' of old program, it was successfully resolved to '/src/project/node_modules/pkg1/index.d.ts'.
 Reusing resolution of type reference directive 'pkg2' from '/src/project/fileWithTypeRefs.ts' of old program, it was successfully resolved to '/src/project/node_modules/pkg2/index.d.ts'.
-======== Resolving type reference directive 'pkg3', containing file '/src/project/fileWithTypeRefs.ts', root directory not set. ========
-Root directory cannot be determined, skipping primary search paths.
+======== Resolving type reference directive 'pkg3', containing file '/src/project/fileWithTypeRefs.ts', root directory '/src/project/node_modules/@types,/src/node_modules/@types,/node_modules/@types'. ========
+Resolving with primary search path '/src/project/node_modules/@types, /src/node_modules/@types, /node_modules/@types'.
+Directory '/src/project/node_modules/@types' does not exist, skipping all lookups in it.
+Directory '/src/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 '/src/project'.
 File '/src/project/node_modules/pkg3/package.json' does not exist.
 File '/src/project/node_modules/pkg3.d.ts' does not exist.
diff --git a/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-insensitive-file-system.js b/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-insensitive-file-system.js
index 802443c20a962..abcefca228573 100644
--- a/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-insensitive-file-system.js
+++ b/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-insensitive-file-system.js
@@ -77,11 +77,9 @@ Info 11   [00:00:44.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/w
 Info 12   [00:00:45.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/types 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
 Info 13   [00:00:46.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
 Info 14   [00:00:47.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 15   [00:00:48.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 16   [00:00:49.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 17   [00:00:50.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
-Info 18   [00:00:51.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 19   [00:00:52.000] 	Files (3)
+Info 15   [00:00:48.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 16   [00:00:49.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 17   [00:00:50.000] 	Files (3)
 	/a/lib/lib.es2016.full.d.ts
 	/Users/someuser/work/applications/frontend/src/app/redux/configureStore.ts
 	/Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts
@@ -94,18 +92,18 @@ Info 19   [00:00:52.000] 	Files (3)
 	src/app/utils/Analytic.ts
 	  Matched by include pattern 'src/**/*' in 'tsconfig.json'
 
-Info 20   [00:00:53.000] -----------------------------------------------
-Info 21   [00:00:54.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 21   [00:00:55.000] 	Files (3)
-
-Info 21   [00:00:56.000] -----------------------------------------------
-Info 21   [00:00:57.000] Open files: 
-Info 21   [00:00:58.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 21   [00:00:59.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 21   [00:01:02.000] DirectoryWatcher:: Triggered with /users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
-Info 22   [00:01:03.000] Scheduled: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 23   [00:01:04.000] Scheduled: *ensureProjectForOpenFiles*
-Info 24   [00:01:05.000] Elapsed:: *ms DirectoryWatcher:: Triggered with /users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
+Info 18   [00:00:51.000] -----------------------------------------------
+Info 19   [00:00:52.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 19   [00:00:53.000] 	Files (3)
+
+Info 19   [00:00:54.000] -----------------------------------------------
+Info 19   [00:00:55.000] Open files: 
+Info 19   [00:00:56.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 19   [00:00:57.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 19   [00:01:00.000] DirectoryWatcher:: Triggered with /users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
+Info 20   [00:01:01.000] Scheduled: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 21   [00:01:02.000] Scheduled: *ensureProjectForOpenFiles*
+Info 22   [00:01:03.000] Elapsed:: *ms DirectoryWatcher:: Triggered with /users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
 Before running timeout callbacks
 //// [/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts]
 export class Cookie { }
@@ -116,8 +114,6 @@ PolledWatches::
   {"pollingInterval":500}
 /users/someuser/work/applications/frontend/node_modules:
   {"pollingInterval":500}
-/users/someuser/work/applications/node_modules:
-  {"pollingInterval":500}
 
 FsWatches::
 /users/someuser/work/applications/frontend/tsconfig.json:
@@ -131,12 +127,12 @@ FsWatchesRecursive::
 /users/someuser/work/applications/frontend/src:
   {}
 
-Info 25   [00:01:06.000] Running: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 26   [00:01:07.000] FileWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
-Info 27   [00:01:08.000] Starting updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 28   [00:01:09.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
-Info 29   [00:01:10.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 30   [00:01:11.000] 	Files (4)
+Info 23   [00:01:04.000] Running: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 24   [00:01:05.000] FileWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
+Info 25   [00:01:06.000] Starting updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 26   [00:01:07.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 27   [00:01:08.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 28   [00:01:09.000] 	Files (4)
 	/a/lib/lib.es2016.full.d.ts
 	/Users/someuser/work/applications/frontend/src/app/redux/configureStore.ts
 	/Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts
@@ -152,24 +148,24 @@ Info 30   [00:01:11.000] 	Files (4)
 	src/app/utils/Cookie.ts
 	  Matched by include pattern 'src/**/*' in 'tsconfig.json'
 
-Info 31   [00:01:12.000] -----------------------------------------------
-Info 32   [00:01:13.000] Running: *ensureProjectForOpenFiles*
-Info 33   [00:01:14.000] Before ensureProjectForOpenFiles:
-Info 34   [00:01:15.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 34   [00:01:16.000] 	Files (4)
-
-Info 34   [00:01:17.000] -----------------------------------------------
-Info 34   [00:01:18.000] Open files: 
-Info 34   [00:01:19.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 34   [00:01:20.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 34   [00:01:21.000] After ensureProjectForOpenFiles:
-Info 35   [00:01:22.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 35   [00:01:23.000] 	Files (4)
-
-Info 35   [00:01:24.000] -----------------------------------------------
-Info 35   [00:01:25.000] Open files: 
-Info 35   [00:01:26.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 35   [00:01:27.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 29   [00:01:10.000] -----------------------------------------------
+Info 30   [00:01:11.000] Running: *ensureProjectForOpenFiles*
+Info 31   [00:01:12.000] Before ensureProjectForOpenFiles:
+Info 32   [00:01:13.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 32   [00:01:14.000] 	Files (4)
+
+Info 32   [00:01:15.000] -----------------------------------------------
+Info 32   [00:01:16.000] Open files: 
+Info 32   [00:01:17.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 32   [00:01:18.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 32   [00:01:19.000] After ensureProjectForOpenFiles:
+Info 33   [00:01:20.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 33   [00:01:21.000] 	Files (4)
+
+Info 33   [00:01:22.000] -----------------------------------------------
+Info 33   [00:01:23.000] Open files: 
+Info 33   [00:01:24.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 33   [00:01:25.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
 After running timeout callbacks
 
 PolledWatches::
@@ -177,8 +173,6 @@ PolledWatches::
   {"pollingInterval":500}
 /users/someuser/work/applications/frontend/node_modules:
   {"pollingInterval":500}
-/users/someuser/work/applications/node_modules:
-  {"pollingInterval":500}
 
 FsWatches::
 /users/someuser/work/applications/frontend/tsconfig.json:
@@ -194,25 +188,25 @@ FsWatchesRecursive::
 /users/someuser/work/applications/frontend/src:
   {}
 
-Info 35   [00:01:28.000] fileExists:: [{"key":"/users/someuser/work/applications/frontend/src/app/utils/cookie.ts","count":1},{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
-Info 36   [00:01:29.000] directoryExists:: [{"key":"/users/someuser/work/applications/frontend/src/app/utils/cookie.ts","count":1}]
-Info 37   [00:01:30.000] getDirectories:: []
-Info 38   [00:01:31.000] readFile:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
-Info 39   [00:01:32.000] readDirectory:: []
-Info 40   [00:01:33.000] FileWatcher:: Close:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
-Info 41   [00:01:34.000] Search path: /Users/someuser/work/applications/frontend/src/app/utils
-Info 42   [00:01:35.000] For info: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: Config file name: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:36.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 43   [00:01:37.000] 	Files (4)
-
-Info 43   [00:01:38.000] -----------------------------------------------
-Info 43   [00:01:39.000] Open files: 
-Info 43   [00:01:40.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 43   [00:01:41.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:42.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts ProjectRootPath: undefined
-Info 43   [00:01:43.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:44.000] fileExists:: []
-Info 44   [00:01:45.000] directoryExists:: []
-Info 45   [00:01:46.000] getDirectories:: []
-Info 46   [00:01:47.000] readFile:: []
-Info 47   [00:01:48.000] readDirectory:: []
\ No newline at end of file
+Info 33   [00:01:26.000] fileExists:: [{"key":"/users/someuser/work/applications/frontend/src/app/utils/cookie.ts","count":1},{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
+Info 34   [00:01:27.000] directoryExists:: [{"key":"/users/someuser/work/applications/frontend/src/app/utils/cookie.ts","count":1}]
+Info 35   [00:01:28.000] getDirectories:: []
+Info 36   [00:01:29.000] readFile:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
+Info 37   [00:01:30.000] readDirectory:: []
+Info 38   [00:01:31.000] FileWatcher:: Close:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
+Info 39   [00:01:32.000] Search path: /Users/someuser/work/applications/frontend/src/app/utils
+Info 40   [00:01:33.000] For info: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: Config file name: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:34.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 41   [00:01:35.000] 	Files (4)
+
+Info 41   [00:01:36.000] -----------------------------------------------
+Info 41   [00:01:37.000] Open files: 
+Info 41   [00:01:38.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 41   [00:01:39.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:40.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts ProjectRootPath: undefined
+Info 41   [00:01:41.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:42.000] fileExists:: []
+Info 42   [00:01:43.000] directoryExists:: []
+Info 43   [00:01:44.000] getDirectories:: []
+Info 44   [00:01:45.000] readFile:: []
+Info 45   [00:01:46.000] readDirectory:: []
\ No newline at end of file
diff --git a/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-sensitive-file-system.js b/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-sensitive-file-system.js
index 60c410090a674..3c1a0230068dd 100644
--- a/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-sensitive-file-system.js
+++ b/tests/baselines/reference/tsserver/cachingFileSystemInformation/watchDirectories-for-config-file-with-case-sensitive-file-system.js
@@ -77,11 +77,9 @@ Info 11   [00:00:44.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/w
 Info 12   [00:00:45.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/types 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
 Info 13   [00:00:46.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
 Info 14   [00:00:47.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 15   [00:00:48.000] DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 16   [00:00:49.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/node_modules 1 undefined Project: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Failed Lookup Locations
-Info 17   [00:00:50.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
-Info 18   [00:00:51.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 19   [00:00:52.000] 	Files (3)
+Info 15   [00:00:48.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 16   [00:00:49.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 17   [00:00:50.000] 	Files (3)
 	/a/lib/lib.es2016.full.d.ts
 	/Users/someuser/work/applications/frontend/src/app/redux/configureStore.ts
 	/Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts
@@ -94,18 +92,18 @@ Info 19   [00:00:52.000] 	Files (3)
 	src/app/utils/Analytic.ts
 	  Matched by include pattern 'src/**/*' in 'tsconfig.json'
 
-Info 20   [00:00:53.000] -----------------------------------------------
-Info 21   [00:00:54.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 21   [00:00:55.000] 	Files (3)
-
-Info 21   [00:00:56.000] -----------------------------------------------
-Info 21   [00:00:57.000] Open files: 
-Info 21   [00:00:58.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 21   [00:00:59.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 21   [00:01:02.000] DirectoryWatcher:: Triggered with /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /Users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
-Info 22   [00:01:03.000] Scheduled: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 23   [00:01:04.000] Scheduled: *ensureProjectForOpenFiles*
-Info 24   [00:01:05.000] Elapsed:: *ms DirectoryWatcher:: Triggered with /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /Users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
+Info 18   [00:00:51.000] -----------------------------------------------
+Info 19   [00:00:52.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 19   [00:00:53.000] 	Files (3)
+
+Info 19   [00:00:54.000] -----------------------------------------------
+Info 19   [00:00:55.000] Open files: 
+Info 19   [00:00:56.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 19   [00:00:57.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 19   [00:01:00.000] DirectoryWatcher:: Triggered with /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /Users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
+Info 20   [00:01:01.000] Scheduled: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 21   [00:01:02.000] Scheduled: *ensureProjectForOpenFiles*
+Info 22   [00:01:03.000] Elapsed:: *ms DirectoryWatcher:: Triggered with /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: WatchInfo: /Users/someuser/work/applications/frontend/src 1 undefined Config: /Users/someuser/work/applications/frontend/tsconfig.json WatchType: Wild card directory
 Before running timeout callbacks
 //// [/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts]
 export class Cookie { }
@@ -116,8 +114,6 @@ PolledWatches::
   {"pollingInterval":500}
 /Users/someuser/work/applications/frontend/node_modules:
   {"pollingInterval":500}
-/Users/someuser/work/applications/node_modules:
-  {"pollingInterval":500}
 
 FsWatches::
 /Users/someuser/work/applications/frontend/tsconfig.json:
@@ -131,12 +127,12 @@ FsWatchesRecursive::
 /Users/someuser/work/applications/frontend/src:
   {}
 
-Info 25   [00:01:06.000] Running: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 26   [00:01:07.000] FileWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
-Info 27   [00:01:08.000] Starting updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 28   [00:01:09.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
-Info 29   [00:01:10.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 30   [00:01:11.000] 	Files (4)
+Info 23   [00:01:04.000] Running: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 24   [00:01:05.000] FileWatcher:: Added:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
+Info 25   [00:01:06.000] Starting updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 26   [00:01:07.000] Finishing updateGraphWorker: Project: /Users/someuser/work/applications/frontend/tsconfig.json Version: 2 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 27   [00:01:08.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 28   [00:01:09.000] 	Files (4)
 	/a/lib/lib.es2016.full.d.ts
 	/Users/someuser/work/applications/frontend/src/app/redux/configureStore.ts
 	/Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts
@@ -152,24 +148,24 @@ Info 30   [00:01:11.000] 	Files (4)
 	src/app/utils/Cookie.ts
 	  Matched by include pattern 'src/**/*' in 'tsconfig.json'
 
-Info 31   [00:01:12.000] -----------------------------------------------
-Info 32   [00:01:13.000] Running: *ensureProjectForOpenFiles*
-Info 33   [00:01:14.000] Before ensureProjectForOpenFiles:
-Info 34   [00:01:15.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 34   [00:01:16.000] 	Files (4)
-
-Info 34   [00:01:17.000] -----------------------------------------------
-Info 34   [00:01:18.000] Open files: 
-Info 34   [00:01:19.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 34   [00:01:20.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 34   [00:01:21.000] After ensureProjectForOpenFiles:
-Info 35   [00:01:22.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 35   [00:01:23.000] 	Files (4)
-
-Info 35   [00:01:24.000] -----------------------------------------------
-Info 35   [00:01:25.000] Open files: 
-Info 35   [00:01:26.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 35   [00:01:27.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 29   [00:01:10.000] -----------------------------------------------
+Info 30   [00:01:11.000] Running: *ensureProjectForOpenFiles*
+Info 31   [00:01:12.000] Before ensureProjectForOpenFiles:
+Info 32   [00:01:13.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 32   [00:01:14.000] 	Files (4)
+
+Info 32   [00:01:15.000] -----------------------------------------------
+Info 32   [00:01:16.000] Open files: 
+Info 32   [00:01:17.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 32   [00:01:18.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 32   [00:01:19.000] After ensureProjectForOpenFiles:
+Info 33   [00:01:20.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 33   [00:01:21.000] 	Files (4)
+
+Info 33   [00:01:22.000] -----------------------------------------------
+Info 33   [00:01:23.000] Open files: 
+Info 33   [00:01:24.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 33   [00:01:25.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
 After running timeout callbacks
 
 PolledWatches::
@@ -177,8 +173,6 @@ PolledWatches::
   {"pollingInterval":500}
 /Users/someuser/work/applications/frontend/node_modules:
   {"pollingInterval":500}
-/Users/someuser/work/applications/node_modules:
-  {"pollingInterval":500}
 
 FsWatches::
 /Users/someuser/work/applications/frontend/tsconfig.json:
@@ -194,25 +188,25 @@ FsWatchesRecursive::
 /Users/someuser/work/applications/frontend/src:
   {}
 
-Info 35   [00:01:28.000] fileExists:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":2}]
-Info 36   [00:01:29.000] directoryExists:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
-Info 37   [00:01:30.000] getDirectories:: []
-Info 38   [00:01:31.000] readFile:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
-Info 39   [00:01:32.000] readDirectory:: []
-Info 40   [00:01:33.000] FileWatcher:: Close:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
-Info 41   [00:01:34.000] Search path: /Users/someuser/work/applications/frontend/src/app/utils
-Info 42   [00:01:35.000] For info: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: Config file name: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:36.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
-Info 43   [00:01:37.000] 	Files (4)
-
-Info 43   [00:01:38.000] -----------------------------------------------
-Info 43   [00:01:39.000] Open files: 
-Info 43   [00:01:40.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
-Info 43   [00:01:41.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:42.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts ProjectRootPath: undefined
-Info 43   [00:01:43.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
-Info 43   [00:01:44.000] fileExists:: []
-Info 44   [00:01:45.000] directoryExists:: []
-Info 45   [00:01:46.000] getDirectories:: []
-Info 46   [00:01:47.000] readFile:: []
-Info 47   [00:01:48.000] readDirectory:: []
\ No newline at end of file
+Info 33   [00:01:26.000] fileExists:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":2}]
+Info 34   [00:01:27.000] directoryExists:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
+Info 35   [00:01:28.000] getDirectories:: []
+Info 36   [00:01:29.000] readFile:: [{"key":"/Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts","count":1}]
+Info 37   [00:01:30.000] readDirectory:: []
+Info 38   [00:01:31.000] FileWatcher:: Close:: WatchInfo: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts 500 undefined WatchType: Closed Script info
+Info 39   [00:01:32.000] Search path: /Users/someuser/work/applications/frontend/src/app/utils
+Info 40   [00:01:33.000] For info: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts :: Config file name: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:34.000] Project '/Users/someuser/work/applications/frontend/tsconfig.json' (Configured)
+Info 41   [00:01:35.000] 	Files (4)
+
+Info 41   [00:01:36.000] -----------------------------------------------
+Info 41   [00:01:37.000] Open files: 
+Info 41   [00:01:38.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Analytic.ts ProjectRootPath: undefined
+Info 41   [00:01:39.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:40.000] 	FileName: /Users/someuser/work/applications/frontend/src/app/utils/Cookie.ts ProjectRootPath: undefined
+Info 41   [00:01:41.000] 		Projects: /Users/someuser/work/applications/frontend/tsconfig.json
+Info 41   [00:01:42.000] fileExists:: []
+Info 42   [00:01:43.000] directoryExists:: []
+Info 43   [00:01:44.000] getDirectories:: []
+Info 44   [00:01:45.000] readFile:: []
+Info 45   [00:01:46.000] readDirectory:: []
\ No newline at end of file
diff --git a/tests/baselines/reference/tsserver/resolutionCache/types-should-load-from-config-file-path-if-config-exists.js b/tests/baselines/reference/tsserver/resolutionCache/types-should-load-from-config-file-path-if-config-exists.js
new file mode 100644
index 0000000000000..c5220185bcb33
--- /dev/null
+++ b/tests/baselines/reference/tsserver/resolutionCache/types-should-load-from-config-file-path-if-config-exists.js
@@ -0,0 +1,61 @@
+Info 0    [00:00:21.000] Provided types map file "/typesMap.json" doesn't exist
+Creating project service
+//// [/a/b/app.ts]
+let x = 1
+
+//// [/a/b/tsconfig.json]
+{"compilerOptions":{"types":["node"]}}
+
+//// [/a/b/node_modules/@types/node/index.d.ts]
+declare var process: any
+
+
+PolledWatches::
+
+FsWatches::
+
+FsWatchesRecursive::
+
+Info 1    [00:00:22.000] Search path: /a/b
+Info 2    [00:00:23.000] For info: /a/b/app.ts :: Config file name: /a/b/tsconfig.json
+Info 3    [00:00:24.000] Creating configuration project /a/b/tsconfig.json
+Info 4    [00:00:25.000] FileWatcher:: Added:: WatchInfo: /a/b/tsconfig.json 2000 undefined Project: /a/b/tsconfig.json WatchType: Config file
+Info 5    [00:00:26.000] Config: /a/b/tsconfig.json : {
+ "rootNames": [
+  "/a/b/app.ts"
+ ],
+ "options": {
+  "types": [
+   "node"
+  ],
+  "configFilePath": "/a/b/tsconfig.json"
+ }
+}
+Info 6    [00:00:27.000] DirectoryWatcher:: Added:: WatchInfo: /a/b 1 undefined Config: /a/b/tsconfig.json WatchType: Wild card directory
+Info 7    [00:00:28.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /a/b 1 undefined Config: /a/b/tsconfig.json WatchType: Wild card directory
+Info 8    [00:00:29.000] Starting updateGraphWorker: Project: /a/b/tsconfig.json
+Info 9    [00:00:30.000] DirectoryWatcher:: Added:: WatchInfo: /a/b/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info 10   [00:00:31.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /a/b/node_modules 1 undefined WatchType: node_modules for closed script infos and package.jsons affecting module specifier cache
+Info 11   [00:00:32.000] DirectoryWatcher:: Added:: WatchInfo: /a/b/node_modules 1 undefined Project: /a/b/tsconfig.json WatchType: Failed Lookup Locations
+Info 12   [00:00:33.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /a/b/node_modules 1 undefined Project: /a/b/tsconfig.json WatchType: Failed Lookup Locations
+Info 13   [00:00:34.000] FileWatcher:: Added:: WatchInfo: /a/lib/lib.d.ts 500 undefined Project: /a/b/tsconfig.json WatchType: Missing file
+Info 14   [00:00:35.000] Finishing updateGraphWorker: Project: /a/b/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 15   [00:00:36.000] Project '/a/b/tsconfig.json' (Configured)
+Info 16   [00:00:37.000] 	Files (2)
+	/a/b/app.ts
+	/a/b/node_modules/@types/node/index.d.ts
+
+
+	app.ts
+	  Matched by default include pattern '**/*'
+	node_modules/@types/node/index.d.ts
+	  Entry point of type library 'node' specified in compilerOptions
+
+Info 17   [00:00:38.000] -----------------------------------------------
+Info 18   [00:00:39.000] Project '/a/b/tsconfig.json' (Configured)
+Info 18   [00:00:40.000] 	Files (2)
+
+Info 18   [00:00:41.000] -----------------------------------------------
+Info 18   [00:00:42.000] Open files: 
+Info 18   [00:00:43.000] 	FileName: /a/b/app.ts ProjectRootPath: undefined
+Info 18   [00:00:44.000] 		Projects: /a/b/tsconfig.json
\ No newline at end of file
diff --git a/tests/baselines/reference/tsserver/resolutionCache/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js b/tests/baselines/reference/tsserver/resolutionCache/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
new file mode 100644
index 0000000000000..5dd964c41b967
--- /dev/null
+++ b/tests/baselines/reference/tsserver/resolutionCache/types-should-not-load-from-config-file-path-if-config-exists-but-does-not-specifies-typeRoots.js
@@ -0,0 +1,55 @@
+Info 0    [00:00:21.000] Provided types map file "/typesMap.json" doesn't exist
+Creating project service
+//// [/a/b/app.ts]
+let x = 1
+
+//// [/a/b/tsconfig.json]
+{"compilerOptions":{"types":["node"],"typeRoots":[]}}
+
+//// [/a/b/node_modules/@types/node/index.d.ts]
+declare var process: any
+
+
+PolledWatches::
+
+FsWatches::
+
+FsWatchesRecursive::
+
+Info 1    [00:00:22.000] Search path: /a/b
+Info 2    [00:00:23.000] For info: /a/b/app.ts :: Config file name: /a/b/tsconfig.json
+Info 3    [00:00:24.000] Creating configuration project /a/b/tsconfig.json
+Info 4    [00:00:25.000] FileWatcher:: Added:: WatchInfo: /a/b/tsconfig.json 2000 undefined Project: /a/b/tsconfig.json WatchType: Config file
+Info 5    [00:00:26.000] Config: /a/b/tsconfig.json : {
+ "rootNames": [
+  "/a/b/app.ts"
+ ],
+ "options": {
+  "types": [
+   "node"
+  ],
+  "typeRoots": [],
+  "configFilePath": "/a/b/tsconfig.json"
+ }
+}
+Info 6    [00:00:27.000] DirectoryWatcher:: Added:: WatchInfo: /a/b 1 undefined Config: /a/b/tsconfig.json WatchType: Wild card directory
+Info 7    [00:00:28.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /a/b 1 undefined Config: /a/b/tsconfig.json WatchType: Wild card directory
+Info 8    [00:00:29.000] Starting updateGraphWorker: Project: /a/b/tsconfig.json
+Info 9    [00:00:30.000] FileWatcher:: Added:: WatchInfo: /a/lib/lib.d.ts 500 undefined Project: /a/b/tsconfig.json WatchType: Missing file
+Info 10   [00:00:31.000] Finishing updateGraphWorker: Project: /a/b/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 11   [00:00:32.000] Project '/a/b/tsconfig.json' (Configured)
+Info 12   [00:00:33.000] 	Files (1)
+	/a/b/app.ts
+
+
+	app.ts
+	  Matched by default include pattern '**/*'
+
+Info 13   [00:00:34.000] -----------------------------------------------
+Info 14   [00:00:35.000] Project '/a/b/tsconfig.json' (Configured)
+Info 14   [00:00:36.000] 	Files (1)
+
+Info 14   [00:00:37.000] -----------------------------------------------
+Info 14   [00:00:38.000] Open files: 
+Info 14   [00:00:39.000] 	FileName: /a/b/app.ts ProjectRootPath: undefined
+Info 14   [00:00:40.000] 		Projects: /a/b/tsconfig.json
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.errors.txt b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.errors.txt
new file mode 100644
index 0000000000000..5e7672baa4b39
--- /dev/null
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.errors.txt
@@ -0,0 +1,22 @@
+error TS2688: Cannot find type definition file for 'phaser'.
+  The file is in the program because:
+    Entry point of type library 'phaser' specified in compilerOptions
+/a.ts(1,1): error TS2304: Cannot find name 'a'.
+
+
+!!! error TS2688: Cannot find type definition file for 'phaser'.
+!!! error TS2688:   The file is in the program because:
+!!! error TS2688:     Entry point of type library 'phaser' specified in compilerOptions
+==== /a.ts (1 errors) ====
+    a;
+    ~
+!!! error TS2304: Cannot find name 'a'.
+==== /typings/dummy.d.ts (0 errors) ====
+    declare const a2: number;
+    
+==== /node_modules/phaser/types/phaser.d.ts (0 errors) ====
+    declare const a: number;
+    
+==== /node_modules/phaser/package.json (0 errors) ====
+    { "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
index f29a1bafe2741..4b42ab41dfba4 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.symbols
@@ -1,8 +1,3 @@
 === /a.ts ===
-a;
->a : Symbol(a, Decl(phaser.d.ts, 0, 13))
-
-=== /node_modules/phaser/types/phaser.d.ts ===
-declare const a: number;
->a : Symbol(a, Decl(phaser.d.ts, 0, 13))
 
+a;
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
index 3374d83d78e5b..a3cd33c89fd1b 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.trace.json
@@ -2,13 +2,6 @@
     "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
     "Resolving with primary search path '/typings'.",
     "File '/typings/phaser.d.ts' does not exist.",
-    "Looking up in 'node_modules' folder, initial location '/'.",
-    "Found 'package.json' at '/node_modules/phaser/package.json'.",
-    "'package.json' does not have a 'typesVersions' field.",
-    "File '/node_modules/phaser.d.ts' does not exist.",
-    "'package.json' does not have a 'typings' field.",
-    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/node_modules/phaser/types/phaser.d.ts'.",
-    "File '/node_modules/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
-    "Resolving real path for '/node_modules/phaser/types/phaser.d.ts', result '/node_modules/phaser/types/phaser.d.ts'.",
-    "======== Type reference directive 'phaser' was successfully resolved to '/node_modules/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: false. ========"
+    "Resolving type reference directive for program that specifies custom typeRoots, skipping lookup in 'node_modules' folder.",
+    "======== Type reference directive 'phaser' was not resolved. ========"
 ]
\ No newline at end of file
diff --git a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
index 20416fc921d6d..2ec6ffcf1be41 100644
--- a/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
+++ b/tests/baselines/reference/typeReferenceDirectiveWithFailedFromTypeRoot.types
@@ -1,8 +1,4 @@
 === /a.ts ===
 a;
->a : number
-
-=== /node_modules/phaser/types/phaser.d.ts ===
-declare const a: number;
->a : number
+>a : any
 
diff --git a/tests/baselines/reference/typeRootsFromMultipleNodeModulesDirectories.trace.json b/tests/baselines/reference/typeRootsFromMultipleNodeModulesDirectories.trace.json
index b4a6fcf3f916b..86af7fccc374e 100644
--- a/tests/baselines/reference/typeRootsFromMultipleNodeModulesDirectories.trace.json
+++ b/tests/baselines/reference/typeRootsFromMultipleNodeModulesDirectories.trace.json
@@ -56,20 +56,23 @@
     "File '/node_modules/abc.js' does not exist.",
     "File '/node_modules/abc.jsx' does not exist.",
     "======== Module name 'abc' was not resolved. ========",
-    "======== Resolving type reference directive 'grumpy', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/node_modules/@types,/node_modules/@types'. ========",
-    "Resolving with primary search path '/foo/node_modules/@types, /node_modules/@types'.",
+    "======== Resolving type reference directive 'grumpy', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/bar/node_modules/@types,/foo/node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path '/foo/bar/node_modules/@types, /foo/node_modules/@types, /node_modules/@types'.",
+    "Directory '/foo/bar/node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/foo/node_modules/@types/grumpy/package.json' does not exist.",
     "File '/foo/node_modules/@types/grumpy/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/foo/node_modules/@types/grumpy/index.d.ts', result '/foo/node_modules/@types/grumpy/index.d.ts'.",
     "======== Type reference directive 'grumpy' was successfully resolved to '/foo/node_modules/@types/grumpy/index.d.ts', primary: true. ========",
-    "======== Resolving type reference directive 'sneezy', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/node_modules/@types,/node_modules/@types'. ========",
-    "Resolving with primary search path '/foo/node_modules/@types, /node_modules/@types'.",
+    "======== Resolving type reference directive 'sneezy', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/bar/node_modules/@types,/foo/node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path '/foo/bar/node_modules/@types, /foo/node_modules/@types, /node_modules/@types'.",
+    "Directory '/foo/bar/node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/foo/node_modules/@types/sneezy/package.json' does not exist.",
     "File '/foo/node_modules/@types/sneezy/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/foo/node_modules/@types/sneezy/index.d.ts', result '/foo/node_modules/@types/sneezy/index.d.ts'.",
     "======== Type reference directive 'sneezy' was successfully resolved to '/foo/node_modules/@types/sneezy/index.d.ts', primary: true. ========",
-    "======== Resolving type reference directive 'dopey', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/node_modules/@types,/node_modules/@types'. ========",
-    "Resolving with primary search path '/foo/node_modules/@types, /node_modules/@types'.",
+    "======== Resolving type reference directive 'dopey', containing file '/foo/bar/__inferred type names__.ts', root directory '/foo/bar/node_modules/@types,/foo/node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path '/foo/bar/node_modules/@types, /foo/node_modules/@types, /node_modules/@types'.",
+    "Directory '/foo/bar/node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/node_modules/@types/dopey/package.json' does not exist.",
     "File '/node_modules/@types/dopey/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/node_modules/@types/dopey/index.d.ts', result '/node_modules/@types/dopey/index.d.ts'.",
diff --git a/tests/baselines/reference/typeRootsFromNodeModulesInParentDirectory.trace.json b/tests/baselines/reference/typeRootsFromNodeModulesInParentDirectory.trace.json
index 97cac6a86a6be..150d0d6620fa3 100644
--- a/tests/baselines/reference/typeRootsFromNodeModulesInParentDirectory.trace.json
+++ b/tests/baselines/reference/typeRootsFromNodeModulesInParentDirectory.trace.json
@@ -12,8 +12,9 @@
     "File '/node_modules/xyz.js' does not exist.",
     "File '/node_modules/xyz.jsx' does not exist.",
     "======== Module name 'xyz' was not resolved. ========",
-    "======== Resolving type reference directive 'foo', containing file '/src/__inferred type names__.ts', root directory '/node_modules/@types'. ========",
-    "Resolving with primary search path '/node_modules/@types'.",
+    "======== Resolving type reference directive 'foo', containing file '/src/__inferred type names__.ts', root directory '/src/node_modules/@types,/node_modules/@types'. ========",
+    "Resolving with primary search path '/src/node_modules/@types, /node_modules/@types'.",
+    "Directory '/src/node_modules/@types' does not exist, skipping all lookups in it.",
     "File '/node_modules/@types/foo/package.json' does not exist.",
     "File '/node_modules/@types/foo/index.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/node_modules/@types/foo/index.d.ts', result '/node_modules/@types/foo/index.d.ts'.",

From aff834f6e068029fa19fc2ec15d14ac9acef597d Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 22:56:58 -0800
Subject: [PATCH 5/6] Add test that shows types file does not act as ambient
 module declaration

---
 ...olutionAsTypeReferenceDirective.errors.txt | 14 ++++++++++++++
 ...oduleResolutionAsTypeReferenceDirective.js | 15 +++++++++++++++
 ...ResolutionAsTypeReferenceDirective.symbols |  8 ++++++++
 ...olutionAsTypeReferenceDirective.trace.json | 19 +++++++++++++++++++
 ...leResolutionAsTypeReferenceDirective.types |  8 ++++++++
 ...solutionAsTypeReferenceDirectiveAmbient.js | 17 +++++++++++++++++
 ...ionAsTypeReferenceDirectiveAmbient.symbols | 12 ++++++++++++
 ...AsTypeReferenceDirectiveAmbient.trace.json | 19 +++++++++++++++++++
 ...utionAsTypeReferenceDirectiveAmbient.types | 12 ++++++++++++
 ...oduleResolutionAsTypeReferenceDirective.ts | 15 +++++++++++++++
 ...solutionAsTypeReferenceDirectiveAmbient.ts | 17 +++++++++++++++++
 11 files changed, 156 insertions(+)
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.js
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.symbols
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.js
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.symbols
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
 create mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.types
 create mode 100644 tests/cases/compiler/moduleResolutionAsTypeReferenceDirective.ts
 create mode 100644 tests/cases/compiler/moduleResolutionAsTypeReferenceDirectiveAmbient.ts

diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt
new file mode 100644
index 0000000000000..45467113ce216
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt
@@ -0,0 +1,14 @@
+/a.ts(1,20): error TS2307: Cannot find module 'phaser' or its corresponding type declarations.
+
+
+==== /a.ts (1 errors) ====
+    import { a2 } from "phaser";
+                       ~~~~~~~~
+!!! error TS2307: Cannot find module 'phaser' or its corresponding type declarations.
+==== /typings/phaser/types/phaser.d.ts (0 errors) ====
+    export const a2: number;
+    
+==== /typings/phaser/package.json (0 errors) ====
+    { "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+    
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.js b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.js
new file mode 100644
index 0000000000000..5e94a36001582
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.js
@@ -0,0 +1,15 @@
+//// [tests/cases/compiler/moduleResolutionAsTypeReferenceDirective.ts] ////
+
+//// [phaser.d.ts]
+export const a2: number;
+
+//// [package.json]
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+
+//// [a.ts]
+import { a2 } from "phaser";
+
+//// [a.js]
+"use strict";
+exports.__esModule = true;
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.symbols b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.symbols
new file mode 100644
index 0000000000000..412bc680e0c31
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.symbols
@@ -0,0 +1,8 @@
+=== /a.ts ===
+import { a2 } from "phaser";
+>a2 : Symbol(a2, Decl(a.ts, 0, 8))
+
+=== /typings/phaser/types/phaser.d.ts ===
+export const a2: number;
+>a2 : Symbol(a2, Decl(phaser.d.ts, 0, 12))
+
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
new file mode 100644
index 0000000000000..a593aff95244d
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
@@ -0,0 +1,19 @@
+[
+    "======== Resolving module 'phaser' from '/a.ts'. ========",
+    "Module resolution kind is not specified, using 'NodeJs'.",
+    "Loading module 'phaser' from 'node_modules' folder, target file types: TypeScript, Declaration.",
+    "Directory '/node_modules' does not exist, skipping all lookups in it.",
+    "Loading module 'phaser' from 'node_modules' folder, target file types: JavaScript.",
+    "Directory '/node_modules' does not exist, skipping all lookups in it.",
+    "======== Module name 'phaser' was not resolved. ========",
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
+    "Resolving with primary search path '/typings'.",
+    "File '/typings/phaser.d.ts' does not exist.",
+    "Found 'package.json' at '/typings/phaser/package.json'.",
+    "'package.json' does not have a 'typesVersions' field.",
+    "'package.json' does not have a 'typings' field.",
+    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
+    "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
+    "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
+    "======== Type reference directive 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: true. ========"
+]
\ No newline at end of file
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
new file mode 100644
index 0000000000000..6850ad3d8afef
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
@@ -0,0 +1,8 @@
+=== /a.ts ===
+import { a2 } from "phaser";
+>a2 : any
+
+=== /typings/phaser/types/phaser.d.ts ===
+export const a2: number;
+>a2 : number
+
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.js b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.js
new file mode 100644
index 0000000000000..deb1772a4e53c
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.js
@@ -0,0 +1,17 @@
+//// [tests/cases/compiler/moduleResolutionAsTypeReferenceDirectiveAmbient.ts] ////
+
+//// [phaser.d.ts]
+declare module "phaser" {
+    export const a2: number;
+}
+
+//// [package.json]
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+
+//// [a.ts]
+import { a2 } from "phaser";
+
+//// [a.js]
+"use strict";
+exports.__esModule = true;
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.symbols b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.symbols
new file mode 100644
index 0000000000000..578a81a43c756
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.symbols
@@ -0,0 +1,12 @@
+=== /a.ts ===
+import { a2 } from "phaser";
+>a2 : Symbol(a2, Decl(a.ts, 0, 8))
+
+=== /typings/phaser/types/phaser.d.ts ===
+declare module "phaser" {
+>"phaser" : Symbol("phaser", Decl(phaser.d.ts, 0, 0))
+
+    export const a2: number;
+>a2 : Symbol(a2, Decl(phaser.d.ts, 1, 16))
+}
+
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
new file mode 100644
index 0000000000000..a593aff95244d
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
@@ -0,0 +1,19 @@
+[
+    "======== Resolving module 'phaser' from '/a.ts'. ========",
+    "Module resolution kind is not specified, using 'NodeJs'.",
+    "Loading module 'phaser' from 'node_modules' folder, target file types: TypeScript, Declaration.",
+    "Directory '/node_modules' does not exist, skipping all lookups in it.",
+    "Loading module 'phaser' from 'node_modules' folder, target file types: JavaScript.",
+    "Directory '/node_modules' does not exist, skipping all lookups in it.",
+    "======== Module name 'phaser' was not resolved. ========",
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
+    "Resolving with primary search path '/typings'.",
+    "File '/typings/phaser.d.ts' does not exist.",
+    "Found 'package.json' at '/typings/phaser/package.json'.",
+    "'package.json' does not have a 'typesVersions' field.",
+    "'package.json' does not have a 'typings' field.",
+    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
+    "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
+    "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
+    "======== Type reference directive 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: true. ========"
+]
\ No newline at end of file
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.types b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.types
new file mode 100644
index 0000000000000..6bc892a4e4145
--- /dev/null
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.types
@@ -0,0 +1,12 @@
+=== /a.ts ===
+import { a2 } from "phaser";
+>a2 : number
+
+=== /typings/phaser/types/phaser.d.ts ===
+declare module "phaser" {
+>"phaser" : typeof import("phaser")
+
+    export const a2: number;
+>a2 : number
+}
+
diff --git a/tests/cases/compiler/moduleResolutionAsTypeReferenceDirective.ts b/tests/cases/compiler/moduleResolutionAsTypeReferenceDirective.ts
new file mode 100644
index 0000000000000..c3e2e2396d5e2
--- /dev/null
+++ b/tests/cases/compiler/moduleResolutionAsTypeReferenceDirective.ts
@@ -0,0 +1,15 @@
+// @noImplicitReferences: true
+// @typeRoots: /typings
+// @types: phaser
+// @traceResolution: true
+// @currentDirectory: /
+
+// @Filename: /typings/phaser/types/phaser.d.ts
+export const a2: number;
+
+// @Filename: /typings/phaser/package.json
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+
+// @Filename: /a.ts
+import { a2 } from "phaser";
\ No newline at end of file
diff --git a/tests/cases/compiler/moduleResolutionAsTypeReferenceDirectiveAmbient.ts b/tests/cases/compiler/moduleResolutionAsTypeReferenceDirectiveAmbient.ts
new file mode 100644
index 0000000000000..a0b7e0d29d1cb
--- /dev/null
+++ b/tests/cases/compiler/moduleResolutionAsTypeReferenceDirectiveAmbient.ts
@@ -0,0 +1,17 @@
+// @noImplicitReferences: true
+// @typeRoots: /typings
+// @types: phaser
+// @traceResolution: true
+// @currentDirectory: /
+
+// @Filename: /typings/phaser/types/phaser.d.ts
+declare module "phaser" {
+    export const a2: number;
+}
+
+// @Filename: /typings/phaser/package.json
+{ "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
+
+
+// @Filename: /a.ts
+import { a2 } from "phaser";
\ No newline at end of file

From a6fed14f5bb2279bac45f348f49ee984baa3512d Mon Sep 17 00:00:00 2001
From: Sheetal Nandi <shkamat@microsoft.com>
Date: Tue, 22 Nov 2022 23:43:23 -0800
Subject: [PATCH 6/6] Resolve module from typeRoot if the resolution doesnt
 succeed

---
 src/compiler/moduleNameResolver.ts            | 32 ++++++++++++++++---
 ...olutionAsTypeReferenceDirective.errors.txt | 14 --------
 ...olutionAsTypeReferenceDirective.trace.json | 14 +++++---
 ...leResolutionAsTypeReferenceDirective.types |  2 +-
 ...AsTypeReferenceDirectiveAmbient.trace.json | 14 +++++---
 .../when-resolves-to-ambient-module.js        | 26 ++++++++-------
 6 files changed, 60 insertions(+), 42 deletions(-)
 delete mode 100644 tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt

diff --git a/src/compiler/moduleNameResolver.ts b/src/compiler/moduleNameResolver.ts
index a2d184c9b59a9..7f4ea3ed5a216 100644
--- a/src/compiler/moduleNameResolver.ts
+++ b/src/compiler/moduleNameResolver.ts
@@ -1552,6 +1552,9 @@ function nodeModuleNameResolverWorker(features: NodeResolutionFeatures, moduleNa
                 }
                 resolved = loadModuleFromNearestNodeModulesDirectory(extensions, moduleName, containingDirectory, state, cache, redirectedReference);
             }
+            if (extensions & Extensions.Declaration) {
+                resolved ??= resolveFromTypeRoot(moduleName, state);
+            }
             if (!resolved) return undefined;
 
             let resolvedValue = resolved.value;
@@ -2770,7 +2773,7 @@ export function classicNameResolver(moduleName: string, containingFile: string,
         if (!isExternalModuleNameRelative(moduleName)) {
             const perModuleNameCache = cache && cache.getOrCreateCacheForModuleName(moduleName, /*mode*/ undefined, redirectedReference);
             // Climb up parent directories looking for a module.
-            const resolved = forEachAncestorDirectory(containingDirectory, directory => {
+            let resolved = forEachAncestorDirectory(containingDirectory, directory => {
                 const resolutionFromCache = tryFindNonRelativeModuleNameInCache(perModuleNameCache, moduleName, directory, state);
                 if (resolutionFromCache) {
                     return resolutionFromCache;
@@ -2778,12 +2781,12 @@ export function classicNameResolver(moduleName: string, containingFile: string,
                 const searchName = normalizePath(combinePaths(directory, moduleName));
                 return toSearchResult(loadModuleFromFileNoPackageId(extensions, searchName, /*onlyRecordFailures*/ false, state));
             });
-            if (resolved) {
-                return resolved;
-            }
+            if (resolved) return resolved;
             if (extensions & (Extensions.TypeScript | Extensions.Declaration)) {
                 // If we didn't find the file normally, look it up in @types.
-                return loadModuleFromNearestNodeModulesDirectoryTypesScope(moduleName, containingDirectory, state);
+                resolved = loadModuleFromNearestNodeModulesDirectoryTypesScope(moduleName, containingDirectory, state);
+                if (extensions & Extensions.Declaration) resolved ??= resolveFromTypeRoot(moduleName, state);
+                return resolved;
             }
         }
         else {
@@ -2793,6 +2796,25 @@ export function classicNameResolver(moduleName: string, containingFile: string,
     }
 }
 
+function resolveFromTypeRoot(moduleName: string, state: ModuleResolutionState) {
+    if (!state.compilerOptions.typeRoots) return;
+    for (const typeRoot of state.compilerOptions.typeRoots) {
+        const candidate = combinePaths(typeRoot, moduleName);
+        const directoryExists = directoryProbablyExists(typeRoot, state.host);
+        if (!directoryExists && state.traceEnabled) {
+            trace(state.host, Diagnostics.Directory_0_does_not_exist_skipping_all_lookups_in_it, typeRoot);
+        }
+        const resolvedFromFile = loadModuleFromFile(Extensions.Declaration, candidate, !directoryExists, state);
+        if (resolvedFromFile) {
+            const packageDirectory = parseNodeModuleFromPath(resolvedFromFile.path);
+            const packageInfo = packageDirectory ? getPackageJsonInfo(packageDirectory, /*onlyRecordFailures*/ false, state) : undefined;
+            return toSearchResult(withPackageId(packageInfo, resolvedFromFile));
+        }
+        const resolved = loadNodeModuleFromDirectory(Extensions.Declaration, candidate, !directoryExists, state);
+        if (resolved) return toSearchResult(resolved);
+    }
+}
+
 /**
  * A host may load a module from a global cache of typings.
  * This is the minumum code needed to expose that functionality; the rest is in the host.
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt
deleted file mode 100644
index 45467113ce216..0000000000000
--- a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.errors.txt
+++ /dev/null
@@ -1,14 +0,0 @@
-/a.ts(1,20): error TS2307: Cannot find module 'phaser' or its corresponding type declarations.
-
-
-==== /a.ts (1 errors) ====
-    import { a2 } from "phaser";
-                       ~~~~~~~~
-!!! error TS2307: Cannot find module 'phaser' or its corresponding type declarations.
-==== /typings/phaser/types/phaser.d.ts (0 errors) ====
-    export const a2: number;
-    
-==== /typings/phaser/package.json (0 errors) ====
-    { "name": "phaser", "version": "1.2.3", "types": "types/phaser.d.ts" }
-    
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
index a593aff95244d..89c7a094d2773 100644
--- a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.trace.json
@@ -3,11 +3,6 @@
     "Module resolution kind is not specified, using 'NodeJs'.",
     "Loading module 'phaser' from 'node_modules' folder, target file types: TypeScript, Declaration.",
     "Directory '/node_modules' does not exist, skipping all lookups in it.",
-    "Loading module 'phaser' from 'node_modules' folder, target file types: JavaScript.",
-    "Directory '/node_modules' does not exist, skipping all lookups in it.",
-    "======== Module name 'phaser' was not resolved. ========",
-    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
-    "Resolving with primary search path '/typings'.",
     "File '/typings/phaser.d.ts' does not exist.",
     "Found 'package.json' at '/typings/phaser/package.json'.",
     "'package.json' does not have a 'typesVersions' field.",
@@ -15,5 +10,14 @@
     "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
     "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
+    "======== Module name 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3'. ========",
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
+    "Resolving with primary search path '/typings'.",
+    "File '/typings/phaser.d.ts' does not exist.",
+    "File '/typings/phaser/package.json' exists according to earlier cached lookups.",
+    "'package.json' does not have a 'typings' field.",
+    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
+    "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
+    "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
     "======== Type reference directive 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: true. ========"
 ]
\ No newline at end of file
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
index 6850ad3d8afef..b1b60c24349da 100644
--- a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirective.types
@@ -1,6 +1,6 @@
 === /a.ts ===
 import { a2 } from "phaser";
->a2 : any
+>a2 : number
 
 === /typings/phaser/types/phaser.d.ts ===
 export const a2: number;
diff --git a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
index a593aff95244d..89c7a094d2773 100644
--- a/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
+++ b/tests/baselines/reference/moduleResolutionAsTypeReferenceDirectiveAmbient.trace.json
@@ -3,11 +3,6 @@
     "Module resolution kind is not specified, using 'NodeJs'.",
     "Loading module 'phaser' from 'node_modules' folder, target file types: TypeScript, Declaration.",
     "Directory '/node_modules' does not exist, skipping all lookups in it.",
-    "Loading module 'phaser' from 'node_modules' folder, target file types: JavaScript.",
-    "Directory '/node_modules' does not exist, skipping all lookups in it.",
-    "======== Module name 'phaser' was not resolved. ========",
-    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
-    "Resolving with primary search path '/typings'.",
     "File '/typings/phaser.d.ts' does not exist.",
     "Found 'package.json' at '/typings/phaser/package.json'.",
     "'package.json' does not have a 'typesVersions' field.",
@@ -15,5 +10,14 @@
     "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
     "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
     "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
+    "======== Module name 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3'. ========",
+    "======== Resolving type reference directive 'phaser', containing file '/__inferred type names__.ts', root directory '/typings'. ========",
+    "Resolving with primary search path '/typings'.",
+    "File '/typings/phaser.d.ts' does not exist.",
+    "File '/typings/phaser/package.json' exists according to earlier cached lookups.",
+    "'package.json' does not have a 'typings' field.",
+    "'package.json' has 'types' field 'types/phaser.d.ts' that references '/typings/phaser/types/phaser.d.ts'.",
+    "File '/typings/phaser/types/phaser.d.ts' exist - use it as a name resolution result.",
+    "Resolving real path for '/typings/phaser/types/phaser.d.ts', result '/typings/phaser/types/phaser.d.ts'.",
     "======== Type reference directive 'phaser' was successfully resolved to '/typings/phaser/types/phaser.d.ts' with Package ID 'phaser/types/phaser.d.ts@1.2.3', primary: true. ========"
 ]
\ No newline at end of file
diff --git a/tests/baselines/reference/tsserver/resolutionCache/when-resolves-to-ambient-module.js b/tests/baselines/reference/tsserver/resolutionCache/when-resolves-to-ambient-module.js
index ebbecdbfdc2b7..6852cae434ce6 100644
--- a/tests/baselines/reference/tsserver/resolutionCache/when-resolves-to-ambient-module.js
+++ b/tests/baselines/reference/tsserver/resolutionCache/when-resolves-to-ambient-module.js
@@ -85,11 +85,13 @@ Info 17   [00:00:50.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/pr
 Info 18   [00:00:51.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/node_modules 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Failed Lookup Locations
 Info 19   [00:00:52.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Failed Lookup Locations
 Info 20   [00:00:53.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/node_modules 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Failed Lookup Locations
-Info 21   [00:00:54.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Type roots
-Info 22   [00:00:55.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Type roots
-Info 23   [00:00:56.000] Finishing updateGraphWorker: Project: /user/username/projects/myproject/src/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
-Info 24   [00:00:57.000] Project '/user/username/projects/myproject/src/tsconfig.json' (Configured)
-Info 25   [00:00:58.000] 	Files (5)
+Info 21   [00:00:54.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Failed Lookup Locations
+Info 22   [00:00:55.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Failed Lookup Locations
+Info 23   [00:00:56.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Type roots
+Info 24   [00:00:57.000] Elapsed:: *ms DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject/src/typings 1 undefined Project: /user/username/projects/myproject/src/tsconfig.json WatchType: Type roots
+Info 25   [00:00:58.000] Finishing updateGraphWorker: Project: /user/username/projects/myproject/src/tsconfig.json Version: 1 structureChanged: true structureIsReused:: Not Elapsed:: *ms
+Info 26   [00:00:59.000] Project '/user/username/projects/myproject/src/tsconfig.json' (Configured)
+Info 27   [00:01:00.000] 	Files (5)
 	/a/lib/lib.d.ts
 	/user/username/projects/myproject/src/somefolder/module1.ts
 	/user/username/projects/myproject/src/somefolder/srcfile.ts
@@ -109,11 +111,11 @@ Info 25   [00:00:58.000] 	Files (5)
 	typings/node.d.ts
 	  Matched by default include pattern '**/*'
 
-Info 26   [00:00:59.000] -----------------------------------------------
-Info 27   [00:01:00.000] Project '/user/username/projects/myproject/src/tsconfig.json' (Configured)
-Info 27   [00:01:01.000] 	Files (5)
+Info 28   [00:01:01.000] -----------------------------------------------
+Info 29   [00:01:02.000] Project '/user/username/projects/myproject/src/tsconfig.json' (Configured)
+Info 29   [00:01:03.000] 	Files (5)
 
-Info 27   [00:01:02.000] -----------------------------------------------
-Info 27   [00:01:03.000] Open files: 
-Info 27   [00:01:04.000] 	FileName: /user/username/projects/myproject/src/somefolder/srcfile.ts ProjectRootPath: /user/username/projects/myproject
-Info 27   [00:01:05.000] 		Projects: /user/username/projects/myproject/src/tsconfig.json
\ No newline at end of file
+Info 29   [00:01:04.000] -----------------------------------------------
+Info 29   [00:01:05.000] Open files: 
+Info 29   [00:01:06.000] 	FileName: /user/username/projects/myproject/src/somefolder/srcfile.ts ProjectRootPath: /user/username/projects/myproject
+Info 29   [00:01:07.000] 		Projects: /user/username/projects/myproject/src/tsconfig.json
\ No newline at end of file