The Merge function in the Layer management tap is still fundamentally broken, as far as my testing goes
" REDIZIT, Dec 31, 2021 " posted about this problem way back,
For more detail look at his post:
Any news on this?
It would rly simplify the 2D workflow and logistics, and I would love to see a proper implementation of this
Update!
Turns out it has been fixed! That was not clear looking at the change log.
Did a test on a completely fresh/newest install and it works. 2022.1.23f1
Update 2x
But now I see the invisible bug that people have been talking about. It likely was a real bug at some point, but what I ran into was a bit different.
If multiple layers exceeds the original canvas size when merged the sprite is generated from the bottom most left pixel of those layers, and while it can merge into a wider sprite then the original canvas size, it will do so incorrectly. This is still the case if the offending layer is deactivated in the import settings
This is most likely to happen if you have pixels outside of the canvas in photoshop for whatever reason.
