UiPath Studio forces your git repository to read xaml and json files as binary format not text.
If you use something like github desktop or anything like that this means that all of your json files too will not be able to do a line-by-line diff preview.
This can get very frustrating, so I found the solution to fix the local repository files and then disabled git integration in Studio’s settings.
The fix is to go into ‘.git/info/attributes’ and change the binary entries to text entries.
See the StackOverflow link here