If you haven't already, grab the June 2022 Release of VS Code! If you're on Insiders, then there's nothing you need to do.
There are all kinds of goodies in the release, but this week's tip is a new feature that landed in VS Code. The 3-way Merge Editor. 🔥
One thing you'll need to do to enable it is add git.mergeEditor: true
to your user settings. If you prefer the GUI for settings, then navigate to the git section.
Make sure to check Git: Merge Editor
And that's it and you are good to go!