@joaomoreno This is a reopen of #78016

I'm sorry I didn't reply to that issue, for some reason GitHub never notified me of the response.

In any event, git does recognize the elements of removing submodules from the list of modified files. For instance, when looking at this in VSCode: https://github.com/microsoft/vscode/blob/master/extensions/git/src/git.ts#L1025

const args = ['diff', '--name-status', '-z', '--diff-filter=ADMR'];

Changing to the below ignores submodules

const args = ['diff', '--name-status', '-z', '--diff-filter=ADMR', '--ignore-submodules'];

While I don't believe the git team ever got around to documenting it, it is in this commit as of March of last year: git/git@b680ee1#diff-ab603fc6eadf618560316097522fe585

The request is to add an option in the settings to toggle that constant as to remove submodules from the listing of modified files in the tree.