Programmer Humor

That's definitely how it is seen.
If I were to see "Discard Changes" anywhere in a dialogue, I would assume it will discard whatever changes I made in that dialogue. In this case, probably some source control related changes. If it were to say "Warning: This will Discard ALL changes!!!", I might do a double take, but had I never used git CLI before, I would still assume that at most it would discard "ALL" changes made in the current session.

For me personally, I would consider it more useful for it to say:

This action will delete the following files:
- followed
- by
- a
- list
- of
- files
- that
- would
- be
- deleted
Continue?

Which neither has to look like a warning, acting like you might be doing something you don't want to and also is much more useful for someone like me who wants to double check what exactly I am deleting.

Also, I have used git CLI before and apart from being able to see blame in the editor itself and maybe a better representation of tree, I don't feel the need to use any git GUI tool. Even when I tried, I realised it was slower and more finicky to use. So, it would stand to reason that it should be targetted towards people who don't use CLI (and might have never used git CLI).