The diffutils new-file test uses the bash "<&-" redirection to close stdin for tests where diff is reading from stdin.
This is not working with bash 4.3.42(1) (ia64-dec-vms)
The diff utility continues to try to read from stdin, and the test hangs when run interactively.
It appears that what we need to do internally is open the stdin on the child to /dev/null.
If I change the first test to use < /dev/null instead of "<&-" the first test passes.