Jean-Luc Herren [off-list ref] writes:
<GREEN FOREGROUND>+<RESET><GREEN FOREGROUND>
line2<RESET><RED BACKGROUND><CR><RESET><LF>
This is expected and deliberate, as you haven't told about your desire to
consider carriage-returns not as line termination letter. By default CR
is just one of the whitespace letters, and colored diff output is
reminding you that you introduced a line with a trailing whitespace.
Check git-config(1) and look for "core.whitespace", paying special
attention to "cr-at-eol".