Open the diff view in current editor, to the side or below.

extensions/merge-conflict/package.json

@@ -115,10 +115,15 @@
           "description": "%config.autoNavigateNextConflictEnabled%",
           "default": false
         },
-        "merge-conflict.openDiffInNewEditor": {
-          "type": "boolean",
-          "description": "%config.openDiffInNewEditor%",
-          "default": false
+        "merge-conflict.diffViewPosition": {
+          "type": "string",
+          "enum": [
+            "Current",
+            "Beside",
+            "Below"
+          ],
+          "description": "%config.diffViewPosition%",
+          "default": "Current"
         }
       }
     }

extensions/merge-conflict/package.nls.json

@@ -16,5 +16,5 @@
 	"config.autoNavigateNextConflictEnabled": "Whether to automatically navigate to the next merge conflict after resolving a merge conflict.",
 	"config.codeLensEnabled": "Create a Code Lens for merge conflict blocks within editor.",
 	"config.decoratorsEnabled": "Create decorators for merge conflict blocks within editor.",
-	"config.openDiffInNewEditor": "Controls if the diff view should be opened in a new editor group when comparing changes in merge conflicts."
+	"config.diffViewPosition": "Controls where the diff view should be opened when comparing changes in merge conflicts."
 }
\ No newline at end of file

extensions/merge-conflict/src/commandHandler.ts

@@ -125,13 +125,13 @@ export default class CommandHandler implements vscode.Disposable {
 
 		const title = localize('compareChangesTitle', '{0}: Current Changes ⟷ Incoming Changes', fileName);
 		const mergeConflictConfig = vscode.workspace.getConfiguration('merge-conflict');
-		const openToTheSide = mergeConflictConfig.get<boolean>('openDiffInNewEditor');
+		const openToTheSide = mergeConflictConfig.get<string>('diffViewPosition');
 		const opts: vscode.TextDocumentShowOptions = {
-			viewColumn: vscode.ViewColumn.Active,
+			viewColumn: openToTheSide === 'Beside' ? vscode.ViewColumn.Beside : vscode.ViewColumn.Active,
 			selection
 		};
 
-		if (openToTheSide) {
+		if (openToTheSide === 'Below') {
 			await vscode.commands.executeCommand('workbench.action.newGroupBelow');
 		}