Consider merging multiple diffs into one

Testing #150389 If multiple diffs are one after the other they are currently rendered as separate (because there is a line with a whitespace). Could we more aggressively combine diffs. Because the current approach might be overly complicated for users <details> <summary>Example repro case</summary> 1. VS Code repo, git checkout `15e4ae374b6` (some commit from 8 days ago) 2. Do the following changes to `extensionHostStarter.ts` and commit 3. git pull - you should get latest and conflicts in extensionHostStarter  ``` /*--------------------------------------------------------------------------------------------- * Copyright (c) Microsoft Corporation. All rights reserved. * Licensed under the MIT License. See License.txt in the project root for license information. *--------------------------------------------------------------------------------------------*/ import { canceled, SerializedError, transformErrorForSerialization } from 'vs/base/common/errors'; import { Disposable, IDisposable } from 'vs/base/common/lifecycle'; import { IExtensionHostProcessOptions, IExtensionHostStarter } from 'vs/platform/extensions/common/extensionHostStarter'; import { Emitter, Event } from 'vs/base/common/event'; import { ILogService } from 'vs/platform/log/common/log'; import { ILifecycleMainService } from 'vs/platform/lifecycle/electron-main/lifecycleMainService'; import { StopWatch } from 'vs/base/common/stopwatch'; import { ChildProcess, fork } from 'child_process'; import { StringDecoder } from 'string_decoder'; import { Promises, timeout } from 'vs/base/common/async'; import { FileAccess } from 'vs/base/common/network'; import { mixin } from 'vs/base/common/objects'; import * as platform from 'vs/base/common/platform'; import { cwd } from 'vs/base/common/process'; export class ExtensionHostStarter implements IDisposable, IExtensionHostStar…