diff --git a/src/harness/virtualFileSystemWithWatch.ts b/src/harness/virtualFileSystemWithWatch.ts
index 5c040bbf2ab..796d963f44b 100644
--- a/src/harness/virtualFileSystemWithWatch.ts
+++ b/src/harness/virtualFileSystemWithWatch.ts
@@ -281,7 +281,7 @@ interface Array<T> { length: number; [n: number]: T; }`
 
     export const timeIncrements = 1000;
 
-    export class TestServerHost extends VirtualServerBaseHost implements server.ServerHost {
+    export class TestServerHost extends VirtualServerHost implements server.ServerHost {
         private readonly output: string[] = [];
         private time = timeIncrements;
         private timeoutCallbacks = new Callbacks(this);
@@ -289,7 +289,6 @@ interface Array<T> { length: number; [n: number]: T; }`
         readonly screenClears: number[] = [];
         private readonly environmentVariables?: ESMap<string, string>;
         public require: ((initialPath: string, moduleName: string) => RequireResult) | undefined;
-        private readonly runWithoutRecursiveWatches?: boolean;
         runWithFallbackPolling: boolean;
         public defaultWatchFileKind?: () => WatchFileKind | undefined;
 
@@ -299,42 +298,14 @@ interface Array<T> { length: number; [n: number]: T; }`
             options: TestServerHostCreationParameters = {}) {
             super({
                 ...options,
-                executingFilePath: options.executingFilePath || getExecutingFilePathFromLibFile()
-            });
-            const { environmentVariables, runWithoutRecursiveWatches, runWithFallbackPolling } = options;
+                executingFilePath: options.executingFilePath || getExecutingFilePathFromLibFile(),
+            },
+            options,
+            () => this.defaultWatchFileKind?.());
+            const { environmentVariables, runWithFallbackPolling } = options;
             fileOrFolderOrSymLinkList = fileOrFolderOrSymLinkList.concat(withSafeList ? safeList : []);
-            const tscWatchFile = environmentVariables && environmentVariables.get("TSC_WATCHFILE");
-            const tscWatchDirectory = environmentVariables && environmentVariables.get("TSC_WATCHDIRECTORY");
-            this.runWithoutRecursiveWatches = runWithoutRecursiveWatches;
             this.runWithFallbackPolling = !!runWithFallbackPolling;
             this.environmentVariables = environmentVariables;
-            const { watchFile, watchDirectory } = createSystemWatchFunctions({
-                // We dont have polling watch file
-                // it is essentially fsWatch but lets get that separate from fsWatch and
-                // into watchedFiles for easier testing
-                pollingWatchFile: tscWatchFile === Tsc_WatchFile.SingleFileWatcherPerName ?
-                    createSingleFileWatcherPerName(
-                        this.watchFileWorker.bind(this),
-                        this.useCaseSensitiveFileNames
-                    ) :
-                    this.watchFileWorker.bind(this),
-                getModifiedTime: this.getModifiedTime.bind(this),
-                setTimeout: this.setTimeout.bind(this),
-                clearTimeout: this.clearTimeout.bind(this),
-                fsWatch: this.fsWatch.bind(this),
-                fileExists: this.fileExists.bind(this),
-                useCaseSensitiveFileNames: this.useCaseSensitiveFileNames,
-                getCurrentDirectory: this.getCurrentDirectory.bind(this),
-                fsSupportsRecursiveFsWatch: tscWatchDirectory ? false : !this.runWithoutRecursiveWatches,
-                directoryExists: this.directoryExists.bind(this),
-                getAccessibleSortedChildDirectories: path => this.getDirectories(path),
-                realpath: this.realpath.bind(this),
-                tscWatchFile: tscWatchFile,
-                tscWatchDirectory: tscWatchDirectory,
-                defaultWatchFileKind: () => this.defaultWatchFileKind?.(),
-            });
-            this.watchFile = watchFile;
-            this.watchDirectory = watchDirectory;
             this.reloadFS(fileOrFolderOrSymLinkList);
         }
 
diff --git a/src/vfs/virtualFileSystemWithWatch.ts b/src/vfs/virtualFileSystemWithWatch.ts
index 4c8f181789f..5d26eb43145 100644
--- a/src/vfs/virtualFileSystemWithWatch.ts
+++ b/src/vfs/virtualFileSystemWithWatch.ts
@@ -122,7 +122,7 @@ namespace ts.VirtualFS {
      *
      * also implements {server.ServerHost} but that would create a circular dependency
      */
-    export abstract class VirtualServerBaseHost implements FormatDiagnosticsHost, ModuleResolutionHost {
+    export class VirtualServerHost implements FormatDiagnosticsHost, ModuleResolutionHost {
         args: string[] = [];
 
         protected fs: ESMap<Path, FSEntry> = new Map();
@@ -144,7 +144,9 @@ namespace ts.VirtualFS {
         constructor({
             useCaseSensitiveFileNames, executingFilePath, currentDirectory,
             newLine, windowsStyleRoot
-        }: VirtualServerHostCreationParameters) {
+        }: VirtualServerHostCreationParameters,
+                    testOptions?: { environmentVariables?: ESMap<string, string>; runWithoutRecursiveWatches?: boolean; },
+                    defaultWatchFileKind?: (() => WatchFileKind | undefined)) {
             this.useCaseSensitiveFileNames = !!useCaseSensitiveFileNames;
             this.newLine = newLine || "\n";
             this.windowsStyleRoot = windowsStyleRoot;
@@ -153,6 +155,36 @@ namespace ts.VirtualFS {
             this.toPath = s => toPath(s, currentDirectory, this.getCanonicalFileName);
             this.executingFilePath = this.getHostSpecificPath(executingFilePath);
             this.currentDirectory = this.getHostSpecificPath(currentDirectory);
+            const { environmentVariables, runWithoutRecursiveWatches } = testOptions || {};
+            const tscWatchFile = environmentVariables && environmentVariables.get("TSC_WATCHFILE");
+            const tscWatchDirectory = environmentVariables && environmentVariables.get("TSC_WATCHDIRECTORY");
+            const { watchFile, watchDirectory } = createSystemWatchFunctions({
+                // We dont have polling watch file
+                // it is essentially fsWatch but lets get that separate from fsWatch and
+                // into watchedFiles for easier testing
+                pollingWatchFile: tscWatchFile === Tsc_WatchFile.SingleFileWatcherPerName ?
+                    createSingleFileWatcherPerName(
+                        this.watchFileWorker.bind(this),
+                        this.useCaseSensitiveFileNames
+                    ) :
+                    this.watchFileWorker.bind(this),
+                getModifiedTime: this.getModifiedTime.bind(this),
+                setTimeout: this.setTimeout.bind(this),
+                clearTimeout: this.clearTimeout.bind(this),
+                fsWatch: this.fsWatch.bind(this),
+                fileExists: this.fileExists.bind(this),
+                useCaseSensitiveFileNames: this.useCaseSensitiveFileNames,
+                getCurrentDirectory: this.getCurrentDirectory.bind(this),
+                fsSupportsRecursiveFsWatch: tscWatchDirectory ? false : !runWithoutRecursiveWatches,
+                directoryExists: this.directoryExists.bind(this),
+                getAccessibleSortedChildDirectories: path => this.getDirectories(path),
+                realpath: this.realpath.bind(this),
+                defaultWatchFileKind: defaultWatchFileKind ?? (() => undefined),
+                tscWatchFile,
+                tscWatchDirectory,
+            });
+            this.watchFile = watchFile;
+            this.watchDirectory = watchDirectory;
         }
 
         getNewLine() {
@@ -621,34 +653,6 @@ namespace ts.VirtualFS {
         }
     }
 
-    export class VirtualServerHost extends VirtualServerBaseHost {
-        constructor(options: VirtualServerHostCreationParameters) {
-            super(options);
-            const { watchFile, watchDirectory } = createSystemWatchFunctions({
-                // We dont have polling watch file
-                // it is essentially fsWatch but lets get that separate from fsWatch and
-                // into watchedFiles for easier testing
-                pollingWatchFile: this.watchFileWorker.bind(this),
-                getModifiedTime: this.getModifiedTime.bind(this),
-                setTimeout: this.setTimeout.bind(this),
-                clearTimeout: this.clearTimeout.bind(this),
-                fsWatch: this.fsWatch.bind(this),
-                fileExists: this.fileExists.bind(this),
-                useCaseSensitiveFileNames: this.useCaseSensitiveFileNames,
-                getCurrentDirectory: this.getCurrentDirectory.bind(this),
-                fsSupportsRecursiveFsWatch: true,
-                directoryExists: this.directoryExists.bind(this),
-                getAccessibleSortedChildDirectories: path => this.getDirectories(path),
-                realpath: this.realpath.bind(this),
-                tscWatchFile: undefined,
-                tscWatchDirectory: undefined,
-                defaultWatchFileKind: () => undefined,
-            });
-            this.watchFile = watchFile;
-            this.watchDirectory = watchDirectory;
-        }
-    }
-
     function diffFsFile(baseline: string[], fsEntry: FsFile) {
         baseline.push(`//// [${fsEntry.fullPath}]\r\n${fsEntry.content}`, "");
     }
diff --git a/tests/baselines/reference/api/tsserverlibrary.d.ts b/tests/baselines/reference/api/tsserverlibrary.d.ts
index f72d1afadd5..3b1b4c63be9 100644
--- a/tests/baselines/reference/api/tsserverlibrary.d.ts
+++ b/tests/baselines/reference/api/tsserverlibrary.d.ts
@@ -6985,7 +6985,8 @@ declare namespace ts.server {
         trace?(s: string): void;
         require?(initialPath: string, moduleName: string): RequireResult;
     }
-    type FileServerHost = Pick<ServerHost, "readFile" | "writeFile" | "fileExists" | "directoryExists" | "getFileSize" | "getModifiedTime" | "getDirectories" | "getCurrentDirectory" | "getExecutingFilePath" | "realpath" | "resolvePath" | "createDirectory" | "setModifiedTime" | "deleteFile" | "readDirectory" | "watchFile" | "watchDirectory" | "useCaseSensitiveFileNames"> & {
+    type FileServerHost = Pick<ServerHost, "readFile" | "writeFile" | "fileExists" | "directoryExists" | "getFileSize" | "getModifiedTime" | "getDirectories" | "getCurrentDirectory" | "getExecutingFilePath" | "realpath" | "resolvePath" | "createDirectory" | "setModifiedTime" | "readDirectory" | "watchFile" | "watchDirectory" | "useCaseSensitiveFileNames"> & {
+        deleteFile(path: string, deleteEmptyParentFolders?: boolean): void;
         ensureFileOrFolder(fileOrDirectoryOrSymLink: {
             path: string;
         } & ({