Resolve Conflicts is broken starting with 3.6.0
Created originally on Bitbucket by Anonymous
After upgrading to version 3.6.0 (the same in 3.6.1) Resolve Conflicts window and kdiff3 do not interoperate well anymore.
Previously, when conflicts were detected during merge, I first clicked "Mercurial Resolve" button. If there were any unresolved conflicts left, I clicked "Tool Resolve" button and either edited manually, or the tool did it for me.
Now, after clicking Mercurial Resolve and then clicking Tool Resolve I end up getting the following pattern in the resulting file:
<<<<<<< local changed line from parent 1
changed line from parent 2
other
It stays there if kdiff3 is launched for manual resolving or if no manual intervention is required.