In a real scalar massive $\phi^4$-interacting theory consider the amputated sunset diagram. This is the integral out of Kleinert and Schulte-Frohlinde Critical Properties of $\phi^4$-Theories:
The above two-loop integral is in Euclidean space, and $\mathbf{q}$ is the incoming momentum.
Using dimensional regularization, where $\epsilon = \frac{4-D}{2}$ and $\mu$ is the reference scale, the above integral takes on the following form when regularized:
Now consider that we take $m \to 0^{+}$ and consider the diagram in the massless case. Then the above simplifies to: $$ - \frac{g^2}{(4\pi)^4} \frac{\mathbf{q}^2}{2\epsilon} + \mathcal{O}(\epsilon^{0}) $$
So we see in the massless case, the $\frac{1}{\epsilon^2}$ term vanishes.
Why does this happen? My understanding is that a $\frac{1}{\epsilon^2}$ signifies a quadratic UV-divergence, while a $\frac{1}{\epsilon}$ signifies a logarithmic UV divergence (maybe this is wrong?).
From a naive power-counting point of view if we look at the original loop integral, we have an integral roughly like $\frac{d^{8}\mathbf{p}}{\mathbf{p}^6}$ for large momenta, which looks like a quadratic divergence - independent of whether $m$ has vanished or not.
Why does the power-counting argument fail when $m=0$? Or is it false that $\frac{1}{\epsilon^2}$ signifies a quadratic UV divergence?