Why files are not excluded in Project view in Fleet?

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I am trying to hide unnecessary files and folders from the Project view in Fleet. Based on the few resources available on the internet I understood that I have to use the files.exclude key in settings.json file.

I tried doing that. But it isn't working. Files and folders are still visible. Please help me if you know how to hide the files and folders to avoid a bloated environment; it's really distracting.

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Where did you configure this option? Please try to configure it here:

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