When Emacs is running diff itself, it could start the output off with
an appropriate -*- type string overriding a possible local variables
block. Or it could append a solitary ^L to the output (which is the
normal way of telling Emacs not to look further backward for a local
variables section).
That would work. However, if the other idea can work--recognize that
the Local Variables list is inside a diff hunk--that would work more
generally.
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