Webpack hot reloading stops working if projects is located in a folder starting with ".git"

### Link to the code that reproduces this issue _Simply create a new project (see instructions below)_ ### To Reproduce 1. Create or navigate to a folder starting with `.git` (example `.git-projects`) 2. Create a new project inside of it (example `npx create-next-app@canary` and select defaults) 3. `next dev` (without `--turbo`) 4. Open example page in browser 5. Change `src/app/page.tsx` 6. Observe no change ### Current vs. Expected behavior **Current** If the parent folders of a nextjs application start with ".git", the webpack dev server (without `--turbo`) will not hot reload any changes made to the app. Example paths of this might be: - `/path/to/my/.git-projects/nextjs-app` (this is my setup, which is how I found this in the first place) - `/path/to/my/.git-projects/a/b/c/nextjs-app` - `/path/to/my/.git/nextjs-app` This is not an issue when using Turbopack. **Expected** Hot reloading should work. --- I honestly don't expect this to be fixed, but I would love for others, who are facing a similar issue, to find this and spare them of multiple hours of wondering why this isn't working as expected. ### Provide environment information ```bash /bin/sh: pnpm: command not found Operating System: Platform: darwin Arch: arm64 Version: Darwin Kernel Version 24.1.0: Thu Oct 10 21:03:11 PDT 2024; root:xnu-11215.41.3~2/RELEASE_ARM64_T6020 Available memory (MB): 32768 Available CPU cores: 12 Binaries: Node: 22.9.0 npm: 10.8.3 Yarn: 1.22.19 pnpm: N/A Relevant Packages: next: 15.2.0-canary.27 // Latest available version is detected (15.2.0-canary.27). eslint-config-next: 15.2.0-canary.27 react: 19.0.0 react-dom: 19.0.0 typescript: 5.7.3 Next.js Config: output: N/A ``` ### Which area(s) are affected? (Select all that apply) Webpack ### Which stage(s) are affected? (Select all that apply) next dev (local) ### Additional context Was tested on `@latest` and `@canary`. Ignore the github repo, it is simply the default template of the current canary vers…