A diagnostic visit is the work that figures out what is wrong with your AC before anyone tries to fix it. It is the part of the job that separates a good repair from a bad one. A good tech measures things. A bad tech guesses, swaps parts, and bills you for parts you didn't need. The flat diagnostic fee on a Saddleback visit pays for the time and the tools to do the measuring work, not for a guess.
A real diagnostic walks the failure tree in order. Thermostat first because that's the cheapest fix. Then the electrical, including the breaker, the disconnect, the contactor, and the run capacitor. Then the refrigerant side, including the suction pressure, head pressure, subcooling, and superheat. Then airflow, including filter, blower amperage, and static pressure. Then the compressor itself, if nothing earlier in the tree explained the symptom. By the time the tech reaches the bottom of the tree, the answer is usually clear and defensible.