Revert changes to matchFiles/readDirectory made since 4.3 (#46787)

* Revert "Fix RWC missing file detection (#46673)"

This reverts commit 4a065f524c.

* Revert "Pass absolute path to directoryExists (#46086)"

This reverts commit 55b4928e82.

* Revert "Reduce exceptions (#44710)"

This reverts commit c0d5c29080.

* Add back system watcher limit

src/harness/virtualFileSystemWithWatch.ts

@@ -922,7 +922,7 @@ interface Array<T> { length: number; [n: number]: T; }`
                     });
                 }
                 return { directories, files };
-            }, path => this.realpath(path), path => this.directoryExists(path));
+            }, path => this.realpath(path));
         }
 
         createHash(s: string): string {