• VSCode Version: 1.1.0-alpha
• OS Version: Windows 10

Related #3615

Steps to Reproduce:

I'm working in the smoke test repo (link)

1. Use quick open Ctrl+P to open some files in node_modules folder (I just used index.js as it occurs a lot)
2. Add in settings

"search.exclude": {
    "**/node_modules": true
}

1. Use Ctrl+P type 'index.js'

The list of recent files still includes files located in /node_modules. I found a previous thread that says using Ctrl+K W will remove them, but excluding them in user settings should also apply to recently opened files without having to use a command to close/remove them.