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Files in .gitignore missing from search when Exclude Git Ignore is off #188273

Description

Type: Bug

When searching a codebase, files in .gitignore are being excluded from the search even though Exclude Git Ignore is unchecked for the User, Workspace and Folder settings.

Expected behavior is that files in .gitignore are only excluded when Exclude Git Ignore is checked.

Disabling "Exclude Settings and Ignore Files" in the search makes the files appear.

VS Code version: Code 1.80.1 (Universal) (74f6148, 2023-07-12T17:20:23.298Z)
OS version: Darwin arm64 21.6.0
Modes:

System Info
Item Value
CPUs Apple M1 Pro (8 x 24)
GPU Status 2d_canvas: enabled
canvas_oop_rasterization: disabled_off
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
metal: disabled_off
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
video_decode: enabled
video_encode: enabled
vulkan: disabled_off
webgl: enabled
webgl2: enabled
webgpu: enabled
Load (avg) 32, 29, 23
Memory (System) 16.00GB (0.15GB free)
Process Argv --crash-reporter-id 77ab6b0a-7967-43bb-909c-90e75503ba8d
Screen Reader no
VM 0%
Extensions (17)
Extension Author (truncated) Version
vscode-toggle-quotes Bri 0.3.6
vscode-eslint dba 2.4.2
vscode-html-css ecm 1.13.1
auto-close-tag for 0.5.14
copilot Git 1.97.270
copilot-labs Git 0.14.884
beautify Hoo 1.5.0
python ms- 2023.12.0
vscode-pylance ms- 2023.7.20
jupyter ms- 2023.6.1101941928
jupyter-keymap ms- 1.1.2
jupyter-renderers ms- 1.0.17
vscode-jupyter-cell-tags ms- 0.1.8
vscode-jupyter-slideshow ms- 0.1.5
vscode-fileutils sle 3.10.2
code-spell-checker str 2.20.5
volar Vue 1.8.5
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