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If you merge with a branch and there are conflicts, magit will show those files as "Unmerged", and TAB will show the conflicts. One would expect running ediff at this point will show those (and only those) conflicts, but it actually shows the diffs of the entire merge (including the diffs that git was able to automatically resolve). I find this counterintuitive and think that the diffs shown by ediff should be the same as the ones shown by TAB.
By the way, this is easily done by running smerge-ediff on the "Unmerged" file.
Typing $$ in the ediff merge command buffer will focus on the conflicting part. We could try to default to that someway.
So I know about $$--but I was asking what should we do. I think it is a nice property for ediff to mirror the diffs shown on magit status. Do you disagree? If you agree, then I can provide a simple patch to provide this behavior, maybe with a user configurable flag.
Starting out in $$ mode would be a nice default. Personally I didn't know $$ mode existed until I went searching for this bug.
I do agree, and such a patch would be great :-)
Please see #1261.