@Tyriar moving to you, it looks like on shutdown we are not properly stopping the backup editor tracker to produce backups after 1s, so if I manage to quit quickly enough after making changes to an untitled file, I see the backup directory show backups for the untitled file (and probably others too) even though I explicitly said to discard the untitled file. Upon restart it will restore from there.

I don't think this is an issue anymore, there is a hot exit check in TextFileService shutdown which either shows prompt or goes ahead with the hot exit. I can only repro th bad hot exit when closing so fast after changing the setting that TextFileService.onConfigurationChange doesn't have a change to run.

Reproduces quite easily:

Ah I misunderstood. Thanks for the gif, should be able to fix tomorrow.