Git is not recognizing some merge conflicts and just accepting incoming master version

I am encountering strange behavior when trying to merge master into a feature branch. Trying with guis VScode and Gitkraken, both are not displaying all conflicts in the files correctly and are just accepting some changes from master which are conflicts and break the code.

I am including two example files as well as screenshots.

In the first example, the conflict of the UseFormReturn type changing between the two versions of the file is not being recognized.

In the second example the useForm hook is completely different between master and the feature branch called hook-form, but no conflict is displayed.

Besides trying to merge the code in VScode and Gitkraken to rule out an issue with the editor, I also installed Git-2.41.0.3-64-bit.exe to make sure it is not a problem with Git-2.44.0-64-bit.exe I was using.

I am quite confused because this seems like a major issue that would not have gone unnoticed so long, but I also don't see what I could be doing wrong.

Ayn support would be much appreciated.

Example and screenshots: https://drive.google.com/file/d/1rUaoA1rCYFzaEYeQldTupinQde-AyRjv/view?usp=sharing

VSCode used:
Version: 1.87.2 (user setup)
Commit: 863d258
Datum: 2024-03-08T15:20:17.278Z
Electron: 27.3.2
ElectronBuildId: 26836302
Chromium: 118.0.5993.159
Node.js: 18.17.1
V8: 11.8.172.18-electron.0
Betriebssystem: Windows_NT x64 10.0.22631