Merge UI XML Files

Type: Bug

When merging from another branch and having to merge my changes in files jox files that are treated as xml inside VSCode using settings.json as below:
"{
"files.associations": {
"*.jox": "xml"
},
"[xml]": {
"files.encoding": "windows1252"
},
"xml.validation.enabled": true,
"xml.format.enabled": true,
"xml.format.splitAttributes": true,
"xml.format.joinCDATALines": false,
"xml.format.preserveAttributeLineBreaks": true,
"githubPullRequests.pullBranch": "always",
"githubPullRequests.defaultMergeMethod": "merge",
"git.mergeEditor": true,
"merge-conflict.autoNavigateNextConflict.enabled": true
}"

I am seeing a block of code with "accept as incoming" or "accept combination" on left. However no matter what I select of these 2 options on the left I then cannot select anything on the right side at all and the UI still says there is one conflict outstanding that I cannot sort out. Initiallly the right also says "Accept Current" and "Accept Combination"

VS Code version: Code 1.131.0 (e4c7e7b1d6d060162f4aa7f8225271b67ce1df75, 2026-07-28T10:51:25Z)
OS version: Windows_NT x64 10.0.26200
Modes:

System Info

|Item|Value|
|---|---|
|CPUs|Intel(R) Core(TM) Ultra 7 265HX (20 x 3072)|
|GPU Status|2d_canvas: enabled
GPU0: VENDOR= 0x10de, DEVICE=0x2d39 [NVIDIA RTX PRO 2000 Blackwell Generation Laptop GPU], DRIVER_VENDOR=NVIDIA, DRIVER_VERSION=32.0.15.9672 *ACTIVE*
GPU1: VENDOR= 0x8086, DEVICE=0x7d67 [Intel(R) Graphics], DRIVER_VERSION=32.0.101.8724
GPU2: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.8875
Machine model name:
Machine model version:
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
skia_graphite: disabled_off
trees_in_viz: disabled_off
video_decode: enabled
video_encode: enabled
webgl: enabled
webgpu: enabled
webnn: disabled_off|
|Load (avg)|undefined|
|Memory (System)|63.43GB (24.91GB free)|
|Process Argv|--crash-reporter-id a0689b8f-dc0b-473a-adfa-86379161b100|
|Screen Reader|no|
|VM|0%|
Extensions (85)

Name|Identifier|Author|Version
---|---|---|---
Claude Code for VS Code|anthropic.claude-code|Anthropic|2.1.221
Avalonia for VSCode|avaloniateam.vscode-avalonia|AvaloniaTeam|12.3.0
Tailwind CSS IntelliSense|bradlc.vscode-tailwindcss|bradlc|0.16.0
vscode-pandoc|chrischinchilla.vscode-pandoc|ChrisChinchilla|0.7.3
npm Intellisense|christian-kohler.npm-intellisense|christian-kohler|1.4.5
Path Intellisense|christian-kohler.path-intellisense|christian-kohler|2.10.0
PostCSS Language Support|csstools.postcss|csstools|1.0.9
Dart|dart-code.dart-code|Dart-Code|3.140.0
Flutter|dart-code.flutter|Dart-Code|3.140.0
markdownlint|davidanson.vscode-markdownlint|DavidAnson|0.62.1
ESLint|dbaeumer.vscode-eslint|dbaeumer|3.0.34
Docker DX|docker.docker|docker|0.18.0
Git History|donjayamanne.githistory|donjayamanne|0.6.20
XML Tools|dotjoshjohnson.xml|DotJoshJohnson|2.5.1
ES7+ React/Redux/React-Native snippets|dsznajder.es7-react-js-snippets|dsznajder|4.4.3
GitLens — Git supercharged|eamodio.gitlens|eamodio|18.3.0
React-Native/React/Redux snippets for es6/es7|equimper.react-native-react-redux|EQuimper|2.0.6
Prettier - Code formatter|esbenp.prettier-vscode|esbenp|12.4.0
Debugger for Firefox|firefox-devtools.vscode-firefox-debug|firefox-devtools|2.15.0
GitHub Actions|github.vscode-github-actions|github|0.32.3
GitHub Pull Requests|github.vscode-pull-request-github|GitHub|0.162.0
Ionide for F#|ionide.ionide-fsharp|Ionide|7.31.1
C# by ReSharper|jetbrains.resharper-code|JetBrains|2026.2.0
Git Graph|mhutchie.git-graph|mhutchie|1.30.0
Azure Load Testing|ms-azure-load-testing.microsoft-testing|ms-azure-load-testing|0.2.0
Azure Developer CLI|ms-azuretools.azure-dev|ms-azuretools|0.10.0
GitHub Copilot for Azure|ms-azuretools.vscode-azure-github-copilot|ms-azuretools|1.0.230
Azure MCP Server|ms-azuretools.vscode-azure-mcp-server|ms-azuretools|2.0.46
Azure App Service|ms-azuretools.vscode-azureappservice|ms-azuretools|0.27.0
Azure Container Apps|ms-azuretools.vscode-azurecontainerapps|ms-azuretools|0.11.2
Azure Functions|ms-azuretools.vscode-azurefunctions|ms-azuretools|1.22.0
Azure Resources|ms-azuretools.vscode-azureresourcegroups|ms-azuretools|0.12.7
Azure Static Web Apps|ms-azuretools.vscode-azurestaticwebapps|ms-azuretools|0.13.3
Azure Storage|ms-azuretools.vscode-azurestorage|ms-azuretools|0.17.2
Azure Virtual Machines|ms-azuretools.vscode-azurevirtualmachines|ms-azuretools|0.6.11
Container Tools|ms-azuretools.vscode-containers|ms-azuretools|2.4.5
Azure Cosmos DB|ms-azuretools.vscode-cosmosdb|ms-azuretools|0.34.0
Docker|ms-azuretools.vscode-docker|ms-azuretools|2.0.0
Microsoft.AspNetCore.Razor.VSCode.BlazorWasmDebuggingExtension|ms-dotnettools.blazorwasm-companion|ms-dotnettools|1.1.4
C# Dev Kit|ms-dotnettools.csdevkit|ms-dotnettools|3.20.199
C#|ms-dotnettools.csharp|ms-dotnettools|2.140.9
Polyglot Notebooks|ms-dotnettools.dotnet-interactive-vscode|ms-dotnettools|1.0.7120010
.NET MAUI|ms-dotnettools.dotnet-maui|ms-dotnettools|1.16.88
.NET Extension Pack|ms-dotnettools.vscode-dotnet-pack|ms-dotnettools|1.0.13
.NET Install Tool|ms-dotnettools.vscode-dotnet-runtime|ms-dotnettools|3.1.0
Data Workspace|ms-mssql.data-workspace-vscode|ms-mssql|0.6.3
SQL Server (mssql)|ms-mssql.mssql|ms-mssql|1.44.1
SQL Bindings|ms-mssql.sql-bindings-vscode|ms-mssql|0.4.1
SQL Database Projects|ms-mssql.sql-database-projects-vscode|ms-mssql|1.6.2
PostgreSQL|ms-ossdata.vscode-pgsql|ms-ossdata|1.28.0
Python Debugger|ms-python.debugpy|ms-python|2026.6.0
Python|ms-python.python|ms-python|2026.4.0
Pylance|ms-python.vscode-pylance|ms-python|2026.3.1
Python Environments|ms-python.vscode-python-envs|ms-python|1.36.0
Jupyter|ms-toolsai.jupyter|ms-toolsai|2025.9.1
Jupyter Keymap|ms-toolsai.jupyter-keymap|ms-toolsai|1.1.2
Jupyter Notebook Renderers|ms-toolsai.jupyter-renderers|ms-toolsai|1.3.0
Jupyter Cell Tags|ms-toolsai.vscode-jupyter-cell-tags|ms-toolsai|0.1.9
Jupyter Slide Show|ms-toolsai.vscode-jupyter-slideshow|ms-toolsai|0.1.6
Dev Containers|ms-vscode-remote.remote-containers|ms-vscode-remote|0.466.0
CMake Tools|ms-vscode.cmake-tools|ms-vscode|1.23.52
C/C++ DevTools|ms-vscode.cpp-devtools|ms-vscode|0.5.13
C/C++|ms-vscode.cpptools|ms-vscode|1.32.2
Hex Editor|ms-vscode.hexeditor|ms-vscode|1.11.1
Makefile Tools|ms-vscode.makefile-tools|ms-vscode|0.12.17
PowerShell|ms-vscode.powershell|ms-vscode|2025.4.0
Azure Tools|ms-vscode.vscode-node-azure-pack|ms-vscode|1.8.2
Live Share|ms-vsliveshare.vsliveshare|ms-vsliveshare|1.1.122
Foundry Toolkit for VS Code|ms-windows-ai-studio.windows-ai-studio|ms-windows-ai-studio|1.6.6
React Native Tools|msjsdiag.vscode-react-native|msjsdiag|1.13.0
Speedy Git|onlineeric.speedy-git-ext|onlineeric|5.8.1
Jest|orta.vscode-jest|Orta|6.4.4
Material Icon Theme|pkief.material-icon-theme|PKief|5.37.0
Postman|postman.postman-for-vscode|Postman|1.19.1
Robotics Developer Environment|ranch-hand-robotics.rde-pack|Ranch-Hand-Robotics|1.0.0
Robot Developer Extensions for ROS 2|ranch-hand-robotics.rde-ros-2|Ranch-Hand-Robotics|1.2.1
Robot Developer Extensions for URDF|ranch-hand-robotics.urdf-editor|Ranch-Hand-Robotics|1.0.0
XML|redhat.vscode-xml|redhat|0.29.3
Microsoft Foundry|teamsdevapp.vscode-ai-foundry|TeamsDevApp|1.2.4
vscode-pdf|tomoki1207.pdf|tomoki1207|1.2.2
CMake|twxs.cmake|twxs|0.0.17
vscode-icons|vscode-icons-team.vscode-icons|vscode-icons-team|12.19.0
TODO Highlight|wayou.vscode-todo-highlight|wayou|1.0.5
Markdown PDF|yzane.markdown-pdf|yzane|2.2.0
Markdown All in One|yzhang.markdown-all-in-one|yzhang|3.6.3

A/B Experiments

```
vsliv368:30146709
vswsl492:30256859
pythonvspyt551:31249599
binariesv615:30325510
nativeloc1:31344060
dwcopilot:31170013
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythonrdcb7:31342333
6518g693:31463988
aj953862:31281341
envsactivate1:31551504
cloudbuttont:31379625
3efgi100_wstrepl:31403338
ec5jj548:31422691
cp_cls_t_966_ss:31526232
4je02754:31466945
c3h7c220:31478652
ge8j1254_inline_auto_hint_haiku:31490510
cp_cls_c_1081:31454833
conptydll_true:31498968
core-renderer-profiling-on:31440367
e9c30283:31461165
test_control1:31471004
c9b86496:31447327
control_6dc23131:31555649
idci7584:31464702
e3e4d672:31494082
ei9d7968:31496641
nes-extended-on:31455476
chat:31457767
8hig5102:31480529
89g7j272:31518289
7e187181:31503455
i2gc6536:31499202
52612955:31516516
ghj88844:31499326
ddid_c:31478207
hmra_i5g22:31518061
7df3h592:31512476
cp_cls_t_1082:31535311
logging_enabled_new:31498466
j0d79568:31499440
jb_cp_cls_t_632:31543129
56dj4588:31512888
32d76977:31512328
ha629193:31508444
cdk-lw-on:31524445
f9bf7985:31543584
a1ije391_t:31540920
hgf2d445:31529595
8hfba999:31537718
jbcp_cls_pctr_t:31531130
61138546:31518536
cp_intellij_t_nes:31548657
jf4hg949:31526829
nes-curr-leftover-1500:31538366
ahp-both-windows:31556933
h561g132:31533256
session_8:31532895
hjji5903:31534458
f412h606:31551416
7g2b5551:31542111
enable_editor_pane_layout:31554332
allow-none:31555437
6i51c363:31551401
ac562147:31560306
c7c27ce7:31554789
nes-gb3-nf-5k:31554345
8hc4g144:31558143
1532g621_copy:31554320
treatment-23-1:31555779
unuse_dynamic_mcp:31555281
a1hcc538:31559322
session-mark-done:31558131

```