I’ve had the option enabled since it was released, and I’ve been pleased with the fact that the feature prevents me from having to worry about my files getting corrupted without me realizing.
I do still have the same problem with Obsidian creating incorrect sync conflicts. But now I get conflict files instead, which I can check and then delete, since they’re always incorrect sync conflicts.
Hopefully this helps you guys narrow down the issue since it isn’t just related to having automatic merge enabled.