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KHL
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A couple tips- I'm fairly sure IIRC Fox can jump-cancel throws better than he can glide toss, or something like that. Someone refresh my memory. I know I see Mew2King do it.
Shining Diddy's up-B kills him. Use the chart wisely, learn to know how far Diddy is going to go in the direction he's pointing while he's charging so you know EXACTLY where he will end up the moment he releases the barrel. If you know where he's going to end up, you will know if he's going to sweetspot or not, and if he's not...dsmash at the ledge all day.
Rush Diddy down if he tries to pull a banana. The thing about Diddy is that he wants space. So many Foxes I see think they've reset the game to neutral if I run away, but Diddy has a uniquely threatening neutral game. Leave him alone and he comes back with bananas. When Diddy has bananas, he OWNS the neutral game. When he doesn't, Fox has the advantage.
Diddy is a fastfaller, so combo him like you would Falcon or MK.
And figure out how to DI his dash attack so he can't dash attack to dair for a kill. I know it can be DI'd correctly, I'm just not usually on the receiving end so I can't tell you the direction.
In my experience, Diddy's kills mostly come from wavedash backwards fsmash, and fair, in this matchup.
Make sure you can consistently tech bananas, and learn banana logic. As a Diddy main, most people don't understand how bananas affect their spacing and options, so when people pick up a banana I just rush them down because I know they're not comfortable. They'll often rush to throw the banana back at me, at which point I shield, jump, Z catch, AGT it and chase it. I do NOT behave this way against another Diddy player.
Remember that wavedashing picks up bananas, and that you can perform your aerials after pressing a Z drop, and you can AGT. Throwing a banana at your feet as your opponent approaches and you retreat just an inch is a great way of handling bananas that people tend to overlook, for example- you've limited your opponent's approach options while he is coming at you, but have full access to all of yours.