Pulling the answer from here
# Tell system where Xcode utilities live:
sudo xcode-select -switch /Applications/Xcode.app/Contents/Developer
# Set "opendiff" as the default mergetool globally:
git config --global merge.tool opendiff
Then, when git
tells you that there is a conflict, you can run git mergetool
and it will open XCode's mergetool (like in the question's screenshot) and you can work through the conflict.