Fix a few diff bugs with directory content
There are a few cases where diff should leave directories in the diff list if we want to match core git, such as when the directory contains a .git dir. That feature was lost when I introduced some of the new submodule handling. This restores that and then fixes a couple of related to diff output that are triggered by having diffs with directories in them. Also, this adds a new flag that can be passed to diff if you want diff output to actually include the file content of any untracked files.
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