The Intra-line Smoothing Threshold causes small spans of equal text between 2 intra-line changes to be marked as part of one combined change. This helps eliminate “noise” within the line.
In the following, the threshold was set to 0 (disabled). Notice how the “x” characters are matched up between the changes on the line.
In the following, the threshold was set to 3. Notice how the “x”, “xx”, and “xxx” sequences are combined with the surrounding changes. But the “xxxx” sequence is not affected.
The intra-line threshold value doesn't change any difference analysis results; it only affects the coloring of short spans of text within the line.
The intra-line threshold is only used when the Detail Level is set to Lines and Characters.