In General, VS Code shows all the changes in single pane of window for confliction.
Sometime VS Code doesn’t work as expected in merge conflict and shows different windows for all the changes.
This issue happens because of feature (3 way merge editor) into VS Code settings. if enabled, it shows all the changes to different windows into editor and becomes hard to predict and understand the changes.
So you need to revert the ‘3 way merge editor’ configuration in VS Code back to merge conflict view to its original view.
Steps to Change VS Code’s Merge Conflict Layout:
To Change VS Code’s Merge Conflict Layout, Go to VS Code settings ->> Search ‘Git: Merge Editor’ and Untick it and merge conflict layout will start behaving as expected.
Alternatively use the command “diffEditor.codeLens”: true, “git.mergeEditor”: false to set the VS Code merge conflict view to its original view.
"diffEditor.codeLens": true, "git.mergeEditor": false