It has been revealed those in the house had only one automatic pistol between them.
The revelations are seen as a huge embarrassment for the elite RAID police group.
Diesel was due to receive a posthumous Dickin medal - Britain's animal equivalent of the Victoria Cross.
Jean-Michael Fauvergue, who commanded the operation, confirmed Diesel was killed by Brennekes, the ammunition used by his force.
He admitted "saturation fire" was used to kill Abdelhamid Abaaoud, the suspected leader of the Paris terrorists, and fellow attacker Chakib Akrouh.
Abaaouud's female cousin was also killed as she tried to give herself up. Her surviving family is launching legal proceedings for her murder and two neighbours hit by bullets are also consulting lawyers.
Five RAID officers also reported friendly fire damage to their equipment.
- nzherald.co.nz