Change grep -e to grep --all We want to reserve -e for future use and grep compatibility. I've changed every-match to all out of a general preference for shorter long option names where short options don't exist.

#!/bin/sh

hg init
echo 123 > a
hg add a
hg commit -m "first" -d "0 0" a
mkdir sub
echo 321 > sub/b
hg add sub/b
hg commit -m "second" -d "0 0" sub/b
cat sub/b
hg co 0
cat sub/b
ls sub

true