Steps to Reproduce:
I'm working in the smoke test repo (link)
The list of recent files still includes files located in /node_modules. I found a previous thread that says using Ctrl+K W will remove them, but excluding them in user settings should also apply to recently opened files without having to use a command to close/remove them.
We should apply the excludes to the editor history too.
+1 on fixing this...
I was very committed to using VS Code (authored 3 plugins for apex development and contributed to a 4th) but I'm sad to say abandoning it for now...
This bug killing my productivity (even caused me to introduce a production bug) and there is no viable work around.
Once you open an search excluded file, it will always seem to pop-up ahead of search included files. Even, if I exclude the file from the project, it still shows up.
@ChuckJonas as a workaround there is a command "Clear Editor History" (removes all) and "Remove from Editor History" to remove an individual entry.