What is diffuse sunlight?

Here is the definition of "diffuse"

1 a : to pour out and permit or cause to spread freely b : EXTEND , SCATTER c : to spread thinly or wastefully
2 : to subject to diffusion ; especially : to break up and distribute (incident light) by reflection
intransitive senses
1 : to spread out or become transmitted especially by contact

sooooo, if sunlight is diffused, what has happened to it?