That basic technique goes back at least to the TranslateAddress method in Exediff (1999) [3].
I've been meaning to write up an article on this stuff [4], Google doesn't seem interested in publicizing Zucchini themselves, maybe due to the patent kerfuffle around Courgette. Microsoft's document on delta compression [5] covers a lot of this ground.
[1] https://chromium.googlesource.com/chromium/src/+/HEAD/compon...
[2] Some of this can be avoided, I made some changes to Courgette for a significant speed increase here: https://bugzilla.mozilla.org/show_bug.cgi?id=504624#c39
[3] http://robert.muth.org/Papers/1999-exediff.pdf
[4] I did write up a bug to consider Zucchini in Firefox, with patch size comparisons, but ultimately we didn't switch from the simple power of bsdiff: https://bugzilla.mozilla.org/show_bug.cgi?id=1632374
[5] Their system can use info from the pre-linked objects and PDB symbol files for better alignment, I'd played around with seeding alignments like this in bsdiff and Zucchini but I don't recall it giving significant improvement. https://docs.microsoft.com/en-us/previous-versions/bb417345(...