[pull] master from microsoft:master#70
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pull[bot] merged 2 commits intocgallred:masterfrom Mar 27, 2026
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Add functional test to reproduce issue #1901: running 'git restore .' after deleting a directory with nested subdirectories fails with 'fatal: cannot create directory: Directory not empty'. Root cause: when git recreates a deleted directory, GVFS's NotifyNewFileCreated handler calls MarkDirectoryAsPlaceholder(), which causes ProjFS to immediately project all children back into the directory. Git then fails when it tries to create subdirectories that ProjFS has already auto-projected. Fix: skip MarkDirectoryAsPlaceholder() for directories whose path (or a parent path) is already in ModifiedPaths, indicating git/user has taken ownership. The directory stays non-virtualized so git can populate it directly without ProjFS interference. Fixes #1901 Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>
…ore-functional-test Fix for delete/restore issue
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