diff --git a/utils/lit/lit/TestRunner.py b/utils/lit/lit/TestRunner.py
index a334d0d..f144780 100644
--- a/utils/lit/lit/TestRunner.py
+++ b/utils/lit/lit/TestRunner.py
@@ -1,8 +1,11 @@
 from __future__ import absolute_import
+import difflib
 import errno
+import functools
 import io
 import itertools
 import getopt
+import locale
 import os, signal, subprocess, sys
 import re
 import stat
@@ -359,6 +362,222 @@
                 exitCode = 1
     return ShellCommandResult(cmd, "", stderr.getvalue(), exitCode, False)
 
+def executeBuiltinDiff(cmd, cmd_shenv):
+    """executeBuiltinDiff - Compare files line by line."""
+    args = expand_glob_expressions(cmd.args, cmd_shenv.cwd)[1:]
+    try:
+        opts, args = getopt.gnu_getopt(args, "wbuU:r", ["strip-trailing-cr"])
+    except getopt.GetoptError as err:
+        raise InternalShellError(cmd, "Unsupported: 'diff':  %s" % str(err))
+
+    filelines, filepaths, dir_trees = ([] for i in range(3))
+    ignore_all_space = False
+    ignore_space_change = False
+    unified_diff = False
+    num_context_lines = 3
+    recursive_diff = False
+    strip_trailing_cr = False
+    for o, a in opts:
+        if o == "-w":
+            ignore_all_space = True
+        elif o == "-b":
+            ignore_space_change = True
+        elif o == "-u":
+            unified_diff = True
+        elif o.startswith("-U"):
+            unified_diff = True
+            try:
+                num_context_lines = int(a)
+                if num_context_lines < 0:
+                    raise ValueException
+            except:
+                raise InternalShellError(cmd,
+                                         "Error: invalid '-U' argument: {}\n"
+                                         .format(a))
+        elif o == "-r":
+            recursive_diff = True
+        elif o == "--strip-trailing-cr":
+            strip_trailing_cr = True
+        else:
+            assert False, "unhandled option"
+
+    if len(args) != 2:
+        raise InternalShellError(cmd, "Error:  missing or extra operand")
+
+    def getDirTree(path, basedir=""):
+        # Tree is a tuple of form (dirname, child_trees).
+        # An empty dir has child_trees = [], a file has child_trees = None.
+        child_trees = []
+        for dirname, child_dirs, files in os.walk(os.path.join(basedir, path)):
+            for child_dir in child_dirs:
+                child_trees.append(getDirTree(child_dir, dirname))
+            for filename in files:
+                child_trees.append((filename, None))
+            return path, sorted(child_trees)
+
+    def compareTwoFiles(filepaths):
+        filelines = []
+        for file in filepaths:
+            with open(file, 'rb') as file_bin:
+                filelines.append(file_bin.readlines())
+
+        try:
+            return compareTwoTextFiles(filepaths, filelines,
+                                       locale.getpreferredencoding(False))
+        except UnicodeDecodeError:
+            try:
+                return compareTwoTextFiles(filepaths, filelines, "utf-8")
+            except:
+                return compareTwoBinaryFiles(filepaths, filelines)
+
+    def compareTwoBinaryFiles(filepaths, filelines):
+        exitCode = 0
+        if hasattr(difflib, 'diff_bytes'):
+            # python 3.5 or newer
+            diffs = difflib.diff_bytes(difflib.unified_diff, filelines[0],
+                                       filelines[1], filepaths[0].encode(),
+                                       filepaths[1].encode(),
+                                       n = num_context_lines)
+            diffs = [diff.decode(errors="backslashreplace") for diff in diffs]
+        else:
+            # python 2.7
+            func = difflib.unified_diff if unified_diff else difflib.context_diff
+            diffs = func(filelines[0], filelines[1], filepaths[0], filepaths[1],
+                         n = num_context_lines)
+
+        for diff in diffs:
+            stdout.write(to_string(diff))
+            exitCode = 1
+        return exitCode
+
+    def compareTwoTextFiles(filepaths, filelines_bin, encoding):
+        filelines = []
+        for lines_bin in filelines_bin:
+            lines = []
+            for line_bin in lines_bin:
+                line = line_bin.decode(encoding=encoding)
+                lines.append(line)
+            filelines.append(lines)
+
+        exitCode = 0
+        def compose2(f, g):
+            return lambda x: f(g(x))
+
+        f = lambda x: x
+        if strip_trailing_cr:
+            f = compose2(lambda line: line.replace('\r\n', '\n'), f)
+        if ignore_all_space or ignore_space_change:
+            ignoreSpace = lambda line, separator: separator.join(line.split())
+            ignoreAllSpaceOrSpaceChange = functools.partial(ignoreSpace, separator='' if ignore_all_space else ' ')
+            f = compose2(ignoreAllSpaceOrSpaceChange, f)
+
+        for idx, lines in enumerate(filelines):
+            filelines[idx]= [f(line) for line in lines]
+
+        func = difflib.unified_diff if unified_diff else difflib.context_diff
+        for diff in func(filelines[0], filelines[1], filepaths[0], filepaths[1],
+                         n = num_context_lines):
+            stdout.write(to_string(diff))
+            exitCode = 1
+        return exitCode
+
+    def printDirVsFile(dir_path, file_path):
+        if os.path.getsize(file_path):
+            msg = "File %s is a directory while file %s is a regular file"
+        else:
+            msg = "File %s is a directory while file %s is a regular empty file"
+        stdout.write(msg % (dir_path, file_path) + "\n")
+
+    def printFileVsDir(file_path, dir_path):
+        if os.path.getsize(file_path):
+            msg = "File %s is a regular file while file %s is a directory"
+        else:
+            msg = "File %s is a regular empty file while file %s is a directory"
+        stdout.write(msg % (file_path, dir_path) + "\n")
+
+    def printOnlyIn(basedir, path, name):
+        stdout.write("Only in %s: %s\n" % (os.path.join(basedir, path), name))
+
+    def compareDirTrees(dir_trees, base_paths=["", ""]):
+        # Dirnames of the trees are not checked, it's caller's responsibility,
+        # as top-level dirnames are always different. Base paths are important
+        # for doing os.walk, but we don't put it into tree's dirname in order
+        # to speed up string comparison below and while sorting in getDirTree.
+        left_tree, right_tree = dir_trees[0], dir_trees[1]
+        left_base, right_base = base_paths[0], base_paths[1]
+
+        # Compare two files or report file vs. directory mismatch.
+        if left_tree[1] is None and right_tree[1] is None:
+            return compareTwoFiles([os.path.join(left_base, left_tree[0]),
+                                    os.path.join(right_base, right_tree[0])])
+
+        if left_tree[1] is None and right_tree[1] is not None:
+            printFileVsDir(os.path.join(left_base, left_tree[0]),
+                           os.path.join(right_base, right_tree[0]))
+            return 1
+
+        if left_tree[1] is not None and right_tree[1] is None:
+            printDirVsFile(os.path.join(left_base, left_tree[0]),
+                           os.path.join(right_base, right_tree[0]))
+            return 1
+
+        # Compare two directories via recursive use of compareDirTrees.
+        exitCode = 0
+        left_names = [node[0] for node in left_tree[1]]
+        right_names = [node[0] for node in right_tree[1]]
+        l, r = 0, 0
+        while l < len(left_names) and r < len(right_names):
+            # Names are sorted in getDirTree, rely on that order.
+            if left_names[l] < right_names[r]:
+                exitCode = 1
+                printOnlyIn(left_base, left_tree[0], left_names[l])
+                l += 1
+            elif left_names[l] > right_names[r]:
+                exitCode = 1
+                printOnlyIn(right_base, right_tree[0], right_names[r])
+                r += 1
+            else:
+                exitCode |= compareDirTrees([left_tree[1][l], right_tree[1][r]],
+                                            [os.path.join(left_base, left_tree[0]),
+                                            os.path.join(right_base, right_tree[0])])
+                l += 1
+                r += 1
+
+        # At least one of the trees has ended. Report names from the other tree.
+        while l < len(left_names):
+            exitCode = 1
+            printOnlyIn(left_base, left_tree[0], left_names[l])
+            l += 1
+        while r < len(right_names):
+            exitCode = 1
+            printOnlyIn(right_base, right_tree[0], right_names[r])
+            r += 1
+        return exitCode
+
+    stderr = StringIO()
+    stdout = StringIO()
+    exitCode = 0
+    try:
+        for file in args:
+            if not os.path.isabs(file):
+                file = os.path.realpath(os.path.join(cmd_shenv.cwd, file))
+    
+            if recursive_diff:
+                dir_trees.append(getDirTree(file))
+            else:
+                filepaths.append(file)
+
+        if not recursive_diff:
+            exitCode = compareTwoFiles(filepaths)
+        else:
+            exitCode = compareDirTrees(dir_trees)
+
+    except IOError as err:
+        stderr.write("Error: 'diff' command failed, %s\n" % str(err))
+        exitCode = 1
+
+    return ShellCommandResult(cmd, stdout.getvalue(), stderr.getvalue(), exitCode, False)
+
 def executeBuiltinRm(cmd, cmd_shenv):
     """executeBuiltinRm - Removes (deletes) files or directories."""
     args = expand_glob_expressions(cmd.args, cmd_shenv.cwd)[1:]
@@ -624,6 +843,14 @@
         results.append(cmdResult)
         return cmdResult.exitCode
 
+    if cmd.commands[0].args[0] == 'diff':
+        if len(cmd.commands) != 1:
+            raise InternalShellError(cmd.commands[0], "Unsupported: 'diff' "
+                                     "cannot be part of a pipeline")
+        cmdResult = executeBuiltinDiff(cmd.commands[0], shenv)
+        results.append(cmdResult)
+        return cmdResult.exitCode
+
     if cmd.commands[0].args[0] == 'rm':
         if len(cmd.commands) != 1:
             raise InternalShellError(cmd.commands[0], "Unsupported: 'rm' "
@@ -644,7 +871,7 @@
     stderrTempFiles = []
     opened_files = []
     named_temp_files = []
-    builtin_commands = set(['cat', 'diff'])
+    builtin_commands = set(['cat'])
     builtin_commands_dir = os.path.join(os.path.dirname(os.path.abspath(__file__)), "builtin_commands")
     # To avoid deadlock, we use a single stderr stream for piped
     # output. This is null until we have seen some output using
@@ -715,8 +942,6 @@
         args = expand_glob_expressions(args, cmd_shenv.cwd)
         if is_builtin_cmd:
             args.insert(0, sys.executable)
-            cmd_shenv.env['PYTHONPATH'] = \
-                os.path.dirname(os.path.abspath(__file__))
             args[1] = os.path.join(builtin_commands_dir ,args[1] + ".py")
 
         # On Windows, do our own command line quoting for better compatibility
diff --git a/utils/lit/lit/builtin_commands/diff.py b/utils/lit/lit/builtin_commands/diff.py
deleted file mode 100644
index 33895b7..0000000
--- a/utils/lit/lit/builtin_commands/diff.py
+++ /dev/null
@@ -1,236 +0,0 @@
-import difflib
-import functools
-import getopt
-import locale
-import os
-import sys
-
-import util
-from util import to_string
-
-class DiffFlags():
-    def __init__(self):
-        self.ignore_all_space = False
-        self.ignore_space_change = False
-        self.unified_diff = False
-        self.num_context_lines = 3
-        self.recursive_diff = False
-        self.strip_trailing_cr = False
-
-def getDirTree(path, basedir=""):
-    # Tree is a tuple of form (dirname, child_trees).
-    # An empty dir has child_trees = [], a file has child_trees = None.
-    child_trees = []
-    for dirname, child_dirs, files in os.walk(os.path.join(basedir, path)):
-        for child_dir in child_dirs:
-            child_trees.append(getDirTree(child_dir, dirname))
-        for filename in files:
-            child_trees.append((filename, None))
-        return path, sorted(child_trees)
-
-def compareTwoFiles(flags, filepaths):
-    filelines = []
-    for file in filepaths:
-        with open(file, 'rb') as file_bin:
-            filelines.append(file_bin.readlines())
-
-    try:
-        return compareTwoTextFiles(flags, filepaths, filelines,
-                                   locale.getpreferredencoding(False))
-    except UnicodeDecodeError:
-        try:
-            return compareTwoTextFiles(flags, filepaths, filelines, "utf-8")
-        except:
-            return compareTwoBinaryFiles(flags, filepaths, filelines)
-
-def compareTwoBinaryFiles(flags, filepaths, filelines):
-    exitCode = 0
-    if hasattr(difflib, 'diff_bytes'):
-        # python 3.5 or newer
-        diffs = difflib.diff_bytes(difflib.unified_diff, filelines[0],
-                                   filelines[1], filepaths[0].encode(),
-                                   filepaths[1].encode(),
-                                   n = flags.num_context_lines)
-        diffs = [diff.decode(errors="backslashreplace") for diff in diffs]
-    else:
-        # python 2.7
-        if flags.unified_diff:
-            func = difflib.unified_diff
-        else:
-            func = difflib.context_diff
-        diffs = func(filelines[0], filelines[1], filepaths[0], filepaths[1],
-                     n = flags.num_context_lines)
-
-    for diff in diffs:
-        sys.stdout.write(to_string(diff))
-        exitCode = 1
-    return exitCode
-
-def compareTwoTextFiles(flags, filepaths, filelines_bin, encoding):
-    filelines = []
-    for lines_bin in filelines_bin:
-        lines = []
-        for line_bin in lines_bin:
-            line = line_bin.decode(encoding=encoding)
-            lines.append(line)
-        filelines.append(lines)
-
-    exitCode = 0
-    def compose2(f, g):
-        return lambda x: f(g(x))
-
-    f = lambda x: x
-    if flags.strip_trailing_cr:
-        f = compose2(lambda line: line.replace('\r\n', '\n'), f)
-    if flags.ignore_all_space or flags.ignore_space_change:
-        ignoreSpace = lambda line, separator: separator.join(line.split())
-        ignoreAllSpaceOrSpaceChange = functools.partial(ignoreSpace, separator='' if flags.ignore_all_space else ' ')
-        f = compose2(ignoreAllSpaceOrSpaceChange, f)
-
-    for idx, lines in enumerate(filelines):
-        filelines[idx]= [f(line) for line in lines]
-
-    func = difflib.unified_diff if flags.unified_diff else difflib.context_diff
-    for diff in func(filelines[0], filelines[1], filepaths[0], filepaths[1],
-                     n = flags.num_context_lines):
-        sys.stdout.write(to_string(diff))
-        exitCode = 1
-    return exitCode
-
-def printDirVsFile(dir_path, file_path):
-    if os.path.getsize(file_path):
-        msg = "File %s is a directory while file %s is a regular file"
-    else:
-        msg = "File %s is a directory while file %s is a regular empty file"
-    sys.stdout.write(msg % (dir_path, file_path) + "\n")
-
-def printFileVsDir(file_path, dir_path):
-    if os.path.getsize(file_path):
-        msg = "File %s is a regular file while file %s is a directory"
-    else:
-        msg = "File %s is a regular empty file while file %s is a directory"
-    sys.stdout.write(msg % (file_path, dir_path) + "\n")
-
-def printOnlyIn(basedir, path, name):
-    sys.stdout.write("Only in %s: %s\n" % (os.path.join(basedir, path), name))
-
-def compareDirTrees(flags, dir_trees, base_paths=["", ""]):
-    # Dirnames of the trees are not checked, it's caller's responsibility,
-    # as top-level dirnames are always different. Base paths are important
-    # for doing os.walk, but we don't put it into tree's dirname in order
-    # to speed up string comparison below and while sorting in getDirTree.
-    left_tree, right_tree = dir_trees[0], dir_trees[1]
-    left_base, right_base = base_paths[0], base_paths[1]
-
-    # Compare two files or report file vs. directory mismatch.
-    if left_tree[1] is None and right_tree[1] is None:
-        return compareTwoFiles(flags,
-                               [os.path.join(left_base, left_tree[0]),
-                                os.path.join(right_base, right_tree[0])])
-
-    if left_tree[1] is None and right_tree[1] is not None:
-        printFileVsDir(os.path.join(left_base, left_tree[0]),
-                       os.path.join(right_base, right_tree[0]))
-        return 1
-
-    if left_tree[1] is not None and right_tree[1] is None:
-        printDirVsFile(os.path.join(left_base, left_tree[0]),
-                       os.path.join(right_base, right_tree[0]))
-        return 1
-
-    # Compare two directories via recursive use of compareDirTrees.
-    exitCode = 0
-    left_names = [node[0] for node in left_tree[1]]
-    right_names = [node[0] for node in right_tree[1]]
-    l, r = 0, 0
-    while l < len(left_names) and r < len(right_names):
-        # Names are sorted in getDirTree, rely on that order.
-        if left_names[l] < right_names[r]:
-            exitCode = 1
-            printOnlyIn(left_base, left_tree[0], left_names[l])
-            l += 1
-        elif left_names[l] > right_names[r]:
-            exitCode = 1
-            printOnlyIn(right_base, right_tree[0], right_names[r])
-            r += 1
-        else:
-            exitCode |= compareDirTrees(flags,
-                                        [left_tree[1][l], right_tree[1][r]],
-                                        [os.path.join(left_base, left_tree[0]),
-                                        os.path.join(right_base, right_tree[0])])
-            l += 1
-            r += 1
-
-    # At least one of the trees has ended. Report names from the other tree.
-    while l < len(left_names):
-        exitCode = 1
-        printOnlyIn(left_base, left_tree[0], left_names[l])
-        l += 1
-    while r < len(right_names):
-        exitCode = 1
-        printOnlyIn(right_base, right_tree[0], right_names[r])
-        r += 1
-    return exitCode
-
-def main(argv):
-    args = argv[1:]
-    try:
-        opts, args = getopt.gnu_getopt(args, "wbuU:r", ["strip-trailing-cr"])
-    except getopt.GetoptError as err:
-        sys.stderr.write("Unsupported: 'diff': %s\n" % str(err))
-        sys.exit(1)
-
-    flags = DiffFlags()
-    filelines, filepaths, dir_trees = ([] for i in range(3))
-    for o, a in opts:
-        if o == "-w":
-            flags.ignore_all_space = True
-        elif o == "-b":
-            flags.ignore_space_change = True
-        elif o == "-u":
-            flags.unified_diff = True
-        elif o.startswith("-U"):
-            flags.unified_diff = True
-            try:
-                flags.num_context_lines = int(a)
-                if flags.num_context_lines < 0:
-                    raise ValueException
-            except:
-                sys.stderr.write("Error: invalid '-U' argument: {}\n"
-                                 .format(a))
-                sys.exit(1)
-        elif o == "-r":
-            flags.recursive_diff = True
-        elif o == "--strip-trailing-cr":
-            flags.strip_trailing_cr = True
-        else:
-            assert False, "unhandled option"
-
-    if len(args) != 2:
-        sys.stderr.write("Error: missing or extra operand\n")
-        sys.exit(1)
-
-    exitCode = 0
-    try:
-        for file in args:
-            if not os.path.isabs(file):
-                file = os.path.realpath(os.path.join(os.getcwd(), file))
-
-            if flags.recursive_diff:
-                dir_trees.append(getDirTree(file))
-            else:
-                filepaths.append(file)
-
-        if not flags.recursive_diff:
-            exitCode = compareTwoFiles(flags, filepaths)
-        else:
-            exitCode = compareDirTrees(flags, dir_trees)
-
-    except IOError as err:
-        sys.stderr.write("Error: 'diff' command failed, %s\n" % str(err))
-        exitCode = 1
-
-    sys.exit(exitCode)
-
-if __name__ == "__main__":
-    main(sys.argv)
diff --git a/utils/lit/tests/Inputs/shtest-shell/diff-error-0.txt b/utils/lit/tests/Inputs/shtest-shell/diff-error-0.txt
new file mode 100644
index 0000000..81888cf
--- /dev/null
+++ b/utils/lit/tests/Inputs/shtest-shell/diff-error-0.txt
@@ -0,0 +1,3 @@
+# Check error on a unsupported diff (cannot be part of a pipeline).
+#
+# RUN: diff diff-error-0.txt diff-error-0.txt | echo Output
diff --git a/utils/lit/tests/Inputs/shtest-shell/diff-pipes.txt b/utils/lit/tests/Inputs/shtest-shell/diff-pipes.txt
deleted file mode 100644
index ce0abca..0000000
--- a/utils/lit/tests/Inputs/shtest-shell/diff-pipes.txt
+++ /dev/null
@@ -1,15 +0,0 @@
-# RUN: echo foo > %t.foo
-# RUN: echo bar > %t.bar
-
-# Check output pipe.
-# RUN: diff %t.foo %t.foo | FileCheck -allow-empty -check-prefix=EMPTY %s
-# RUN: diff -u %t.foo %t.bar | FileCheck %s && false || true
-
-# Fail so lit will print output.
-# RUN: false
-
-# CHECK:      @@
-# CHECK-NEXT: -foo
-# CHECK-NEXT: +bar
-
-# EMPTY-NOT: {{.}}
diff --git a/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-0.txt b/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-0.txt
new file mode 100644
index 0000000..ee3858a
--- /dev/null
+++ b/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-0.txt
@@ -0,0 +1,3 @@
+# Check bad -U argument.
+# RUN: echo foo > %t
+# RUN: diff -U 30.1 %t %t
diff --git a/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-1.txt b/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-1.txt
new file mode 100644
index 0000000..e46e8b5
--- /dev/null
+++ b/utils/lit/tests/Inputs/shtest-shell/diff-unified-error-1.txt
@@ -0,0 +1,3 @@
+# Check bad -U argument.
+# RUN: echo foo > %t
+# RUN: diff -U-1 %t %t
diff --git a/utils/lit/tests/Inputs/shtest-shell/diff-unified.txt b/utils/lit/tests/Inputs/shtest-shell/diff-unified.txt
index e977c19..a6a7eef 100644
--- a/utils/lit/tests/Inputs/shtest-shell/diff-unified.txt
+++ b/utils/lit/tests/Inputs/shtest-shell/diff-unified.txt
@@ -30,9 +30,5 @@
 # RUN: diff -U4 %t.foo %t.bar && false || true
 # RUN: diff -U0 %t.foo %t.bar && false || true
 
-# Check bad -U argument.
-# RUN: diff -U 30.1 %t.foo %t.foo && false || true
-# RUN: diff -U-1 %t.foo %t.foo && false || true
-
 # Fail so lit will print output.
 # RUN: false
diff --git a/utils/lit/tests/max-failures.py b/utils/lit/tests/max-failures.py
index 7bd5c32..6ad3753 100644
--- a/utils/lit/tests/max-failures.py
+++ b/utils/lit/tests/max-failures.py
@@ -8,7 +8,7 @@
 #
 # END.
 
-# CHECK: Failing Tests (30)
+# CHECK: Failing Tests (32)
 # CHECK: Failing Tests (1)
 # CHECK: Failing Tests (2)
 # CHECK: error: argument --max-failures: requires positive integer, but found '0'
diff --git a/utils/lit/tests/shtest-shell.py b/utils/lit/tests/shtest-shell.py
index dd5bfbe..1fc8b30 100644
--- a/utils/lit/tests/shtest-shell.py
+++ b/utils/lit/tests/shtest-shell.py
@@ -86,20 +86,28 @@
 # CHECK: ***
 
 
+# CHECK: FAIL: shtest-shell :: diff-error-0.txt
+# CHECK: *** TEST 'shtest-shell :: diff-error-0.txt' FAILED ***
+# CHECK: $ "diff" "diff-error-0.txt" "diff-error-0.txt"
+# CHECK: # command stderr:
+# CHECK: Unsupported: 'diff' cannot be part of a pipeline
+# CHECK: error: command failed with exit status: 127
+# CHECK: ***
+
 # CHECK: FAIL: shtest-shell :: diff-error-1.txt
 # CHECK: *** TEST 'shtest-shell :: diff-error-1.txt' FAILED ***
 # CHECK: $ "diff" "-B" "temp1.txt" "temp2.txt"
 # CHECK: # command stderr:
 # CHECK: Unsupported: 'diff': option -B not recognized
-# CHECK: error: command failed with exit status: 1
+# CHECK: error: command failed with exit status: 127
 # CHECK: ***
 
 # CHECK: FAIL: shtest-shell :: diff-error-2.txt
 # CHECK: *** TEST 'shtest-shell :: diff-error-2.txt' FAILED ***
 # CHECK: $ "diff" "temp.txt"
 # CHECK: # command stderr:
-# CHECK: Error: missing or extra operand
-# CHECK: error: command failed with exit status: 1
+# CHECK: Error:  missing or extra operand
+# CHECK: error: command failed with exit status: 127
 # CHECK: ***
 
 # CHECK: FAIL: shtest-shell :: diff-error-3.txt
@@ -126,43 +134,18 @@
 # CHECK: *** TEST 'shtest-shell :: diff-error-5.txt' FAILED ***
 # CHECK: $ "diff"
 # CHECK: # command stderr:
-# CHECK: Error: missing or extra operand
-# CHECK: error: command failed with exit status: 1
+# CHECK: Error:  missing or extra operand
+# CHECK: error: command failed with exit status: 127
 # CHECK: ***
 
 # CHECK: FAIL: shtest-shell :: diff-error-6.txt
 # CHECK: *** TEST 'shtest-shell :: diff-error-6.txt' FAILED ***
 # CHECK: $ "diff"
 # CHECK: # command stderr:
-# CHECK: Error: missing or extra operand
-# CHECK: error: command failed with exit status: 1
+# CHECK: Error:  missing or extra operand
+# CHECK: error: command failed with exit status: 127
 # CHECK: ***
 
-
-# CHECK: FAIL: shtest-shell :: diff-pipes.txt
-
-# CHECK: *** TEST 'shtest-shell :: diff-pipes.txt' FAILED ***
-
-# CHECK: $ "diff" "{{[^"]*}}.foo" "{{[^"]*}}.foo"
-# CHECK-NOT: note
-# CHECK-NOT: error
-# CHECK: $ "FileCheck"
-# CHECK-NOT: note
-# CHECK-NOT: error
-
-# CHECK: $ "diff" "-u" "{{[^"]*}}.foo" "{{[^"]*}}.bar"
-# CHECK: note: command had no output on stdout or stderr
-# CHECK: error: command failed with exit status: 1
-# CHECK: $ "FileCheck"
-# CHECK-NOT: note
-# CHECK-NOT: error
-# CHECK: $ "true"
-
-# CHECK: $ "false"
-
-# CHECK: ***
-
-
 # CHECK: FAIL: shtest-shell :: diff-r-error-0.txt
 # CHECK: *** TEST 'shtest-shell :: diff-r-error-0.txt' FAILED ***
 # CHECK: $ "diff" "-r" 
@@ -272,6 +255,23 @@
 # CHECK: ***
 
 
+# CHECK: FAIL: shtest-shell :: diff-unified-error-0.txt
+# CHECK: *** TEST 'shtest-shell :: diff-unified-error-0.txt' FAILED ***
+# CHECK: $ "diff" "-U" "30.1" "{{[^"]*}}" "{{[^"]*}}"
+# CHECK: # command stderr:
+# CHECK: Error: invalid '-U' argument: 30.1
+# CHECK: error: command failed with exit status: 127
+# CHECK: ***
+
+# CHECK: FAIL: shtest-shell :: diff-unified-error-1.txt
+# CHECK: *** TEST 'shtest-shell :: diff-unified-error-1.txt' FAILED ***
+# CHECK: $ "diff" "-U-1" "{{[^"]*}}" "{{[^"]*}}"
+# CHECK: # command stderr:
+# CHECK: Error: invalid '-U' argument: -1
+# CHECK: error: command failed with exit status: 127
+# CHECK: ***
+
+
 # CHECK: FAIL: shtest-shell :: diff-unified.txt
 
 # CHECK: *** TEST 'shtest-shell :: diff-unified.txt' FAILED ***
@@ -330,18 +330,6 @@
 # CHECK-NEXT: error: command failed with exit status: 1
 # CHECK-NEXT: $ "true"
 
-# CHECK: $ "diff" "-U" "30.1" "{{[^"]*}}" "{{[^"]*}}"
-# CHECK: # command stderr:
-# CHECK: Error: invalid '-U' argument: 30.1
-# CHECK: error: command failed with exit status: 1
-# CHECK: $ "true"
-
-# CHECK: $ "diff" "-U-1" "{{[^"]*}}" "{{[^"]*}}"
-# CHECK: # command stderr:
-# CHECK: Error: invalid '-U' argument: -1
-# CHECK: error: command failed with exit status: 1
-# CHECK: $ "true"
-
 # CHECK: $ "false"
 
 # CHECK: ***
@@ -426,4 +414,4 @@
 # CHECK: PASS: shtest-shell :: sequencing-0.txt
 # CHECK: XFAIL: shtest-shell :: sequencing-1.txt
 # CHECK: PASS: shtest-shell :: valid-shell.txt
-# CHECK: Failing Tests (30)
+# CHECK: Failing Tests (32)