Nonlinear dynamic behavior of diffusive-thermal instability in diluted CH$_4$/O$_2$ diffusion flames is numerically investigated by adopting detailed chemistry and transport. Counterflow diffusion flame is adopted as a model flamelet. Particular attention is focused on the pulsating-instability regime, which arises for Lewis numbers greater than unity, and the instability occurs at high strain rate near extinction condition in this flame configuration. Once a steady flame structure is obtained for a prescribed value of initial strain rate, transient solution of the flame is calculated after a finite amount of strain-rate perturbation is imposed on the steady flame. Transient evolution of the flame depends on the initial strain rate and the amount of perturbed strain rate. Basically, the dynamic behaviors can be classified into two types, namely non-oscillatory decaying solution and diverging solution leading to extinction. The peculiar oscillatory solution, which has been found in the previous study adopting one-step chemistry and constant Lewis numbers, is net observed in this study, which is attributed to both convective flow and preferential diffusion effects.