We cannot know from looking at .gitmodules whether a directory is a
submodule or not. We need the index or tree we are comparing against to
tell us. Otherwise we have to assume the entry in .gitmodules is stale
or otherwise invalid.

Thus we pass the index of the repository into the workdir iterator, even
if we do not want to compare against it. This follows what git does,
which even for `git diff <tree>`, it will consider staged submodules as
such.