Update diff handling of untracked directories
When diff encounters an untracked directory, there was a shortcut that it took which is not compatible with core git. This makes the default behavior no longer take that shortcut and instead look inside the untracked directory to see if there are any untracked files within it. If there are not, then the directory is treated as an ignore directory instead of an untracked directory. This has implications for the git_status APIs.
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