The conflict message:
CONFLICT (delete/modify): res/layout/dialog_item.xml deleted in dialog and modified in HEAD
means that res/layout/dialog_item.xml
was deleted in the 'dialog' branch you are merging, but was modified in HEAD (in the branch you are merging to).
So you have to decide whether
git rm res/layout/dialog_item.xml
"or
git add res/layout/dialog_item.xml
"Then you finalize merge with "git commit
".
Note that git will warn you that you are creating a merge commit, in the (rare) case where it is something you don't want. Probably remains from the days where said case was less rare.