Merging, conflict errors on VsCode

Hi,

Our GitLab repo is working on local network. We have an issue while merging changes. We use VS Code on Ubuntu.
In large projects, conflicts are not correct and I think it only checks line numbers instead of functions. Also, when we accept only incoming or current changes but still project gives errors. It adds brackets or removes on code.

We want to see conflicts and merging correctly.
We use the latest GitLab version , Ubuntu 18.04.4, Vs Code 1.48.0