fix(windows): canonicalize native watch paths

packages/settings/settings-local/README.md

@@ -24,6 +24,7 @@ Defaulting is one explicit `resolveSpec(config)` step; an unsupported extension
 - **YAML edits are leaf-level diffs.** A write sets only the values that changed and deletes only the keys that were removed, so comments, anchors, and formatting survive on every untouched node and on the key of every changed pair; a changed array (or other non-map value) replaces wholesale, taking comments inside it along. JSON re-serializes without comments.
 - **Reloads and writes share one operation chain.** Watcher refreshes and persists from every namespace queue run one at a time in queue order; each render sees the text the previous operation committed.
 - **The watcher's ready signal reconciles once.** The initial load races the watcher's own setup, so a change written in between never fires an event; the reconcile at ready closes that startup gap.
+- **The native watcher receives a canonical path.** Before Chokidar opens the target, the provider realpaths its deepest existing ancestor and restores any missing suffix. File access and user-facing diagnostics retain the configured path, while Windows cannot mix an 8.3 alias with long-form event paths inside libuv.
 - **Dispose quiesces in every watch mode.** Teardown marks the provider closed, closes the watcher when present, then waits out every queued or in-flight document operation, so nothing publishes after disposal.
 - **Self-write suppression by content.** The provider caches the last good text; a watcher event whose content equals the cache (its own write included) is a no-op.
 - **Host configuration adapters receive the resolved path.** `ctx.settings.documentPath` is the absolute `resolveSpec()` filename, including a custom YAML/JSON path; `prepareDocument()` preserves an existing file or exclusively creates an absent empty file with owner-only permissions before the Host opens it. The browser receives only an availability flag, never reconstructs `$DSH_HOME`, and never submits a filesystem target.