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[Feature]: improve merge conflict handling #832

@gsxdsm

Description

@gsxdsm

Feature Area

UI/UX (User Interface)

Priority

Nice to have

Problem Statement

Merge conflicts are now detected and can be resolved with AI, but the experience still feels broke - hard to see the conflicts and continue with a merge manually. Do a deeper investigation and fixes here

Proposed Solution

Better merge conflict editor

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Checklist

  • I have searched existing issues to ensure this feature hasn't been requested already
  • I have provided a clear description of the problem and proposed solution

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