"Hide non-functional changes" should hide changes from the original file too

[dimonchik0036]

Without the option:

With the option:

Another example:

These highlights on the left side (with the option) looks redundant

[onewhl]

@dimonchik0036 yes, it's a known bug, we didn't find a way to remove such highlighting from the left side of the diff.
We thought that setting com.intellij.openapi.editor.FoldRegion#setInnerHighlightersMuted() equal true might help, but it didn't. If you have any ideas on how to resolve it, please let us know :)