UPDATE
(Given the upvotes, I feel there is a need for a complete step-by-step explanation...)
File
->Open Folder...
FOLDERS
sidebar available)View
-> Side Bar
-> Show Side Bar
FOLDERS
-titled Side Bar to navigate to the first file you want to compare.Diff Files...
There should be a new Tab now showing the comparison.
Original short answer:
Note that:
The "Diff files" only appears with the "folders" sidebar (to open a folder: File->Open Folder) , not with "open files" sidebar.