Jing Xue [off-list ref] writes:
[jc: please redirect an answer _meant for you_ off to the list with M-F-T header]
In Git 1.6.0 the following sequence:
...
The deletion of 2.txt appears lost during 'checkout -b foo', while the
modification and addition were both brought over. Is it a bug?
This behaviour is unchanged since early June 2005.
http://thread.gmane.org/gmane.comp.version-control.git/4641/focus=4646
This is exactly the case marked as *0*, which both Linus and I said "it
feels somewhat wrong but otherwise we cannot start from an empty index".
We may want to do better this time around, though.