Cannot discard merge changes in merge editor (with auto save on)

[stevenlele]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.97.0-insider
• OS Version: Windows 10

Steps to Reproduce:

1. Turn on auto save
2. Open a file with conflict when rebasing/merging (containing <<<<<<< ======= >>>>>>> markers)
3. Click "Resolve in Merge Editor" button
4. Don't accept any changes, close the tab and choose "Close with Conflicts" in the dialog
5. The file is in a partially-merged state, <<<<<<< ======= >>>>>>> markers are gone

Observations:

• The initial behavior was that you could "Discard Merge Changes" to revert to the original file (v1.70.0)
  • Merge editor and auto save #152841
  • tweak message when closing dirty and conflicting merge editor #155176
• Later the option was removed since "The 3wm editor is not dirty by default anymore", which I don't think is true (v1.71.0)
  • Merge Editor Overrides Result After Reloading #158405
  • The 3wm editor is not dirty by default anymore and therefore we can tweak the close handler #158476
  • You can confirm that the original snapshot is still taken (with the diff markers) with the "Merge Editor (Dev): Save Merge Editor State to Folder" command

@jrieken