diff --git a/crates/fs/src/fs.rs b/crates/fs/src/fs.rs
index e44f557646239da5dd84354e364422cf16e14233..fa42c436f1b9beb4a17a63a61eeeb02b7e889569 100644
--- a/crates/fs/src/fs.rs
+++ b/crates/fs/src/fs.rs
@@ -1889,7 +1889,10 @@ impl FakeFs {
 
             drop(repo_state);
             if emit_git_event {
-                state.emit_event([(dot_git, Some(PathEventKind::Changed))]);
+                state.emit_event([(
+                    dot_git.join("fake_git_repo_event"),
+                    Some(PathEventKind::Changed),
+                )]);
             }
 
             Ok(result)
@@ -1944,7 +1947,10 @@ impl FakeFs {
 
             if emit_git_event {
                 drop(repo_state);
-                state.emit_event([(canonical_path, Some(PathEventKind::Changed))]);
+                state.emit_event([(
+                    canonical_path.join("fake_git_repo_event"),
+                    Some(PathEventKind::Changed),
+                )]);
             }
 
             Ok(result)
diff --git a/crates/worktree/src/worktree.rs b/crates/worktree/src/worktree.rs
index 990ed4fd54c0d2935c0dddf9d42fb632dbae15d5..8d66c375a24168e82af11e3eac022366fe288f1c 100644
--- a/crates/worktree/src/worktree.rs
+++ b/crates/worktree/src/worktree.rs
@@ -3295,7 +3295,7 @@ impl BackgroundScannerState {
     }
 }
 
-async fn is_git_dir(path: &Path, fs: &dyn Fs) -> bool {
+async fn is_dot_git(path: &Path, fs: &dyn Fs) -> bool {
     if let Some(file_name) = path.file_name()
         && file_name == DOT_GIT
     {
@@ -4291,7 +4291,7 @@ impl BackgroundScanner {
                 let mut dot_git_paths = None;
 
                 for ancestor in abs_path.as_path().ancestors() {
-                    if is_git_dir(ancestor, self.fs.as_ref()).await {
+                    if is_dot_git(ancestor, self.fs.as_ref()).await {
                         let path_in_git_dir = abs_path
                             .as_path()
                             .strip_prefix(ancestor)
@@ -4312,15 +4312,7 @@ impl BackgroundScanner {
                     let is_dot_git_changed = {
                         path_in_git_dir == Path::new("")
                             && event.kind == Some(PathEventKind::Changed)
-                            && abs_path
-                                .strip_prefix(root_canonical_path)
-                                .ok()
-                                .and_then(|it| RelPath::new(it, PathStyle::local()).ok())
-                                .is_some_and(|it| {
-                                    snapshot
-                                        .entry_for_path(&it)
-                                        .is_some_and(|entry| entry.kind == EntryKind::Dir)
-                                })
+                            && self.fs.is_dir(abs_path.as_path()).await
                     };
                     let condition = skipped_files_in_dot_git.iter().any(|skipped| {
                         OsStr::new(skipped) == path_in_git_dir.as_path().as_os_str()