I wonder how others use the diff view for notebooks in VS Code. With the recent updates the diff view change when I use the Python extension (which includes the Jupyter extension).
So before I used to see the line base text diffs, which I still see if I turn off the Python extension:

When I turn the Python extension on, I see a one-to-one comparison where I do not see much if the notebooks are a bit more complicated (changing some details in a Markdown-Cell):

Questions
I am on Windows and I tried to turn off several settings in the extension(s), without seeing any difference:

I also remember there being a "do not show automatically in notebook editor" setting, but I cannot see it right now! I have to manuelly start the notebook viewer in the File-Tab (first) as I want though, so it is "off".
Any ideas what I am missing or do you think this is a bug?
You could try the method in this link to test this process in "Visual Studio Code Insiders": Git diff for ipynb files is being replaced by the notebook editor
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