When does update/merge conflict produce .edited file?

Please see this thread from Subclipse mailing list:

http://svn.haxx.se/subusers/archive-2012-11/0001.shtml

Basically, a user has a recipe where an svn update has text conflicts.
 In addition to the usual conflict files, there is also a file named
"foo.txt.edited" created. I can see in libsvn_wc/merge.c (in 1.7.x
branch) that this can happen. In trunk this is now in conflicts.c.

It is not clear to me what scenario triggers this, as I could not reproduce it.

Anyway, it seems like the possible bug is that svn resolve does not
remove this file as it does the others. Maybe if I could reproduce
the problem I would understand why it is not removed, but it seems
like a bug.

-- 
Thanks
Mark Phippard
http://markphip.blogspot.com/