Thanks for this useful package.
The output of
latexdiff --type=CCHANGEBAR --subtype=COLOR --math-markup=3 a2-old.tex a2-new.tex >a2-diff.tex; latex a2-diff.tex
gives
.....
! LaTeX Error: \begin{align*} on input line 56 ended by \end{equation}.
See the LaTeX manual or LaTeX Companion for explanation.
Type H <return> for immediate help.
...
l.58 ...gma}\DIFdelend \DIFaddbegin \end{equation}
......
see simplified samples attached.
Thanks for the bug report. There is an easy workaround by using --math-markup=2 (coarse) mode instead. If you read about this option in the help function you will find that the coarse mode is recommended for your case (order of equations still changing, in your case 2 and 3). Making this work in 'fine' markup mode is fairly tricky, unfortunately. Regards Frederik