Great,
That helps to see the history, and i did some of my own testing...
In my testing, i types 3 words, then waited a few seconds, then deleted them and typed in 3 new words...
The first 3 words did not show in history.
Then i did a new test, again typing 3 words, then waiting 1 minute, then deleting them and typing in 3 new words.
The first 3 words showed up as being deleted, with strikethrough and highlighted blue, with the new text appearing below (even though it was typed into the same postion of as the first 3 words.
This may be due to being a "new paragraph" rather than an edit within a paragraph.
Heres a screenshot:
When i check your file version history i can see some words were overwritten.
Heres a screenshot:
Your edits show "in-line" before the new text.