[Bug] DiffEditor shows overloads because of duplicated definitions

Reproducible in vscode.dev or in VS Code Desktop?

• Not reproducible in vscode.dev or VS Code Desktop

Monaco Editor Playground Code

var originalModel = monaco.editor.createModel('function foo() {}', 'javascript');
var modifiedModel = monaco.editor.createModel('function foo() {}', 'javascript');

var diffEditor = monaco.editor.createDiffEditor(document.getElementById('container'));
diffEditor.setModel({
	original: originalModel,
	modified: modifiedModel
});

Actual Behavior

Editor shows two definitions for function

Resulting in a +1 overload

Expected Behavior

I would expect just one definition. The definition, referencing a function in the same file should depend on the model I am currently looking at.

Additional Context

We are using the DiffEditor to compare changes to a file since it has been saved the last time, thus the two models refer to the same file in different states. Cross referencing functions between the two models does not make sense for our use case and is kind of irritating.
Is there an option to deactivate it, or are we entirely on the wrong track?

Start with the Monaco Editor Playground reproduction using monaco.editor.createModel, monaco.editor.createDiffEditor, and diffEditor.setModel. Trace how definitions are resolved across the original and modified models, then check whether an existing option controls this behavior. Done means the same-file DiffEditor case shows one definition without breaking cross-file references.