Visual diff is entirely missing a paragraph removal for this diff:
Compare to wikitext diff:
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The "removed" paragraph was (with a few changes) just moved down, and the visual diff indeed shows this. The only problems I can see, are the fact, that the place from where it was moved is not shown, and the fact that the move indicator is really tiny, which is probably both in the scope of T169325.
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Oh, indeed, thank you! If I didn't know what to look for, I wouldn't have noticed that.