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The Liverpool ECHO reports that VAR operators at Stockley Park determined Diaz had no effect on Tarkowski's play, hence the original decision stood.
Speaking to evertontv, a frustrated Branthwaite said: "It's always going to be tough when you come to Anfield.
He was looking at it, he says he knew what he's looking at, but then he's looked at it and not given it, so I can't really get my head around it.
"I said, 'Are you looking at the Tarky (offside) with Diaz?' He says, 'Yeah, I'm looking at it'.
"We had the chances to get back into the game, chances to go in the lead in the first half especially
We've got to have the precision so the man who's getting the ball has the best possible chance of putting a cross in or scoring a goal.
"We need to improve on that if we're going to pick up points away to big teams where we're only going to get one or two chances."
Despite the outcome, Branthwaite remains proud of Everton's performance, adding: "I think you've seen the reaction after the game by Liverpool
You know, it was a massive game and you can see how happy Liverpool was with the result
I think on the last game when I came here, it wasn't the case."
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