Diff view: Notebooks output marked in green and red when no changes observed

[ronglums]

Version: 1.62.0-insider (user setup)
Commit: 34eeebd
Date: 2021-10-15T05:16:57.817Z
Electron: 13.5.1
Chrome: 91.0.4472.164
Node.js: 14.16.0
V8: 9.1.269.39-electron.0
OS: Windows_NT x64 10.0.19043

Steps to Reproduce:

1. Open this notebook file in VS Code: https://github.com/claudiaregio/data-science/blob/main/Titanic.ipynb
2. Add a new cell at the end of the file and run it.
3. Switch to SCM sidebar and open the notebook diff view.

Expected: no output is highlighted in green or red color except for the newly added cell.
Actual: Output that's marked as unchanged show in green and red color. for example:

for reference: video recording of the issue https://msit.microsoftstream.com/video/77870840-98dc-948e-5cfa-f1ec309ecd3a (starting 20'15'')