Wikidata diffs now do not display (undo) links. See e.g. a random diff which displays a (restore) link but not (undo). (History pages still have “undo” links.)
My personal suspect: rMW6906a7728cf5447d30da6c7a51add936f469978a#change-op58PNimx6Sc started to check for ContentHandler::supportsDirectEditing() but I don’t think Wikibase entity handler returns true there (and I am not sure it should).