Probably my least favourite thing about Microsoft's pretend Git suppoort is how Visual Studio doesn't show reasonable merges for csproj files when Git's own annotations in those files are almost always optimal, and they could literally just parse out those diff markers.
Instead they have a custom dummy diff engine that marks the entire contents of both files as conflicting.

Or they could do the sensible, ideal thing and diff the XML DOM, but that may set the bar too high.