Project with composite: true fails to build if a dependency builds its .d.ts files in same directory as the .ts source files.

[chriseppstein]

TypeScript Version: 3.5.0-dev.20190430

Search Terms:
composite "not in project file list"

Code
https://github.com/chriseppstein/reproduce-composite-build-issue

To reproduce:

git clone https://github.com/chriseppstein/reproduce-composite-build-issue.git
cd reproduce-composite-build-issue
yarn install
yarn compile 

Building the project succeeds with the current configuration but by changing the project to "composite": true the build will fail with an error.

This simple project consumes a published npm module with a "types" property in package.json. The format of the project is such that the build results are colocated with the source *.ts files.

Expected behavior:
The build succeeds with composite: true

Actual behavior:
The build fails with this error:

error TS6307: File '/Users/ceppstei/Projects/tmp/repro-fs-tree-diff-issue/node_modules/fs-tree-diff/lib/entry.ts' is not in project file list. Projects must list all files or use an 'include' pattern.

Related Issues:
#25636 looks similar but the fix seems to be related to the fact it was a json file.

[chriseppstein]

@sheetalkamat Thank you for fixing this!