Diff algorithm detects two consecutive added lines as two changes (instead of one)

[bersbersbers]

• VS Code Version: 1.54.3
• OS Version: Windows 10, SSH to Linux

Steps to Reproduce:

1. bug1.txt:

1


2

2. bug2.txt:

1

1.5


2

3

3. Compare selected

Result:

This diff is not wrong, but it's not minimal. The first two changes could be merged into one, just like diff does it:

> diff bug1.txt bug2.txt 
2a3,4
> 1.5
> 
4a7,8
> 
> 3

Interestingly, removing the final line break from bug2.txt prevents the issue:

Does this issue occur when all extensions are disabled?: Yes

[bersbersbers]

Thanks!