Reliable handling of code diffs is central to agents that edit and refactor repositories at scale. We introduce Diff-XYZ, a compact benchmark for code-diff understanding with three supervised tasks: apply (old code $+$ diff $\rightarrow$ new code), anti-apply (new code $-$ diff $\rightarrow$ old code), and diff generation (new code $-$ old code $\rightarrow$ diff). Instances in the benchmark are triples $\langle \textit{old code}, \textit{new code}, \textit{diff} \rangle$ drawn from real commits in CommitPackFT, paired with automatic metrics and a clear evaluation protocol. We use the benchmark to do a focused empirical study of the unified diff format and run a cross-format comparison of different diff representations. Our findings reveal that different formats should be used depending on the use case and model size. For example, representing diffs in search-replace format is good for larger models in the diff generation scenario, yet not suited well for diff analysis and smaller models. The Diff-XYZ benchmark is a reusable foundation for assessing and improving diff handling in LLMs that can aid future development of diff formats and models editing code. The dataset is published on HuggingFace Hub: https://huggingface.co/datasets/JetBrains-Research/diff-xyz.
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