Turn on Ignore Whitespace when two copies differ only in spacing, such as double spaces or indentation from a paste. In TheDailyUtils it treats any run of spaces or tabs inside a line as one space and ignores spaces at the start and end of each line. It does not join lines that were wrapped differently, and it does not ignore a space that is missing entirely.

The left copy has two spaces in “Blue notebook” and two spaces before “Pack”. The right copy is clean.
Blue notebook Pack the charger Meet at 9 am
Blue notebook Pack the charger Meet at 9 am

Unchanged rows show the left text on both sides, so you may still see the double space in the result. That is expected; the setting only changes what counts as a difference.
Meet at 9 am vs Meet at 9am is still a change. Runs of spaces become one space; they don’t disappear.Spacing is sometimes the content. Keep Ignore Whitespace off for Python or YAML, where indentation changes meaning; for plain-text tables aligned with spaces; and for text inside quotes in code. A good habit for important edits is two passes: first with Ignore Whitespace on to read the wording changes, then with it off to see what spacing changed.
Ignore Case is a separate setting. Capitalizing a name and re-indenting a line are different edits, so turn on only the one you mean.
The comparison runs in your browser and the text is not uploaded. The tool does keep your last 20 comparisons in this browser’s History panel; click the trash icon there after comparing anything private. Open the free Text Diff tool.