Create a first new text document.

Enter 3 lines of text:
Line 1
Line 2
Line 3

Save and close.

In Windows Explorer make a copy of the first file.

Open it and Edit - Changes - Record

IN THIS ORDER:
Lengthen line 2
Add a Line 4
Delete Line 3

Save and close.

Open the first document.

Edit - Changes - Merge Document

Merge with the second document.

Edit - Changes - Accept or Reject

The insertions shown are correct. The deletion will delete line 4 instead of 
Line 3

If you try again, but first remove Line 3 and add Line 4, all is OK.