Git 2.9.0 introduced a "compaction heuristic" option that uses blank lines as a "strong hint" in computing diff block boundaries. It would be nice to get use a similar heuristic in the VS Code diff viewer. (If it is using the git diff util behind-the-scenes, this would already work).
https://github.com/blog/2188-git-2-9-has-been-released#beautiful-diffs
Code doesn't use git for diffing behind the scenes. But it's a valid request for the diff algorithm.
I think I just implemented this in c8df698 (for #30087)
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