The diff modules seems to care about a newline at the end of a line, so whenever something is added, the content before that addition is always considered modified, even though it wasn't really modified. Since the newline really only matters if content follows it, and that content will show up as modified or added, I think the diff shouldn't include trailing newlines as part of its comparison.
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Comment #1
bcasteel commentedI think this is pretty standard behavior for any diff program, and the diff module shouldn't behave differently. The fix for this should be to simply include a newline after the content.