Handle an edge case with well-known ignores when applying exclusions

.changeset/eleven-numbers-leave.md

@@ -0,0 +1,5 @@
+---
+'steiger': patch
+---
+
+Handle an edge case with well-known ignores (like .DS_Store on macOS) when applying glob exclusions

packages/steiger/src/features/transfer-fs-to-vfs.ts

@@ -1,18 +1,35 @@
-import { join, sep } from 'node:path'
+import { join, sep, resolve, parse, dirname } from 'node:path'
+import { existsSync } from 'node:fs'
 import chokidar from 'chokidar'
 import type { Folder } from '@steiger/types'
 import { isGitIgnored } from 'globby'
 
 import { createVfsRoot } from '../models/vfs'
 
+function findGitRoot(startDir: string): string | null {
+  let currentDir = resolve(startDir)
+
+  while (currentDir !== parse(currentDir).root) {
+    const gitFolderOrLinkPath = join(currentDir, '.git')
+
+    if (existsSync(gitFolderOrLinkPath)) {
+      return currentDir
+    }
+    // Move up one directory
+    currentDir = dirname(currentDir)
+  }
+
+  return null
+}
+
 /**
  * Start watching a given path with chokidar.
  *
  * Returns a reactive virtual file system (VFS) and a reference to the watcher
  */
 export async function createWatcher(path: string) {
   const vfs = createVfsRoot(path)
-  const isIgnored = await isGitIgnored({ cwd: path })
+  const isIgnored = await isGitIgnored({ cwd: findGitRoot(path) || path })
 
   const watcher = chokidar.watch(path, {
     ignored: (path) => path.split(sep).includes('node_modules') || isIgnored(path),