I'm using Fedora 38 and diffutils 3.9 installed. I also compiled from
source and see the same issue.

file1:
Here is some old line.

file2:
Here is some new line.

% diff-3.8 -D NEW file1 file2
#ifndef NEW
Here is some old line.
#else /* NEW */
Here is some new line.
#endif /* NEW */

% diff-3.9 -D NEW file1 file2:
Here is some old line.
Here is some new line.

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