Alas, Loro fails The Color of Pomegranates test as well. (JSON trace, really cool toy they got there: https://pastebin.com/6dSDc6Su)
Now, what some Git merge software is doing is using LLMs to coordinate merges, which I think might be useful to do so in plain text editing too, perhaps embedded into these CRDT libraries, but fundamentally, there must be someone to facilitate merges, whether it be a human agent or an AI one. It is impossible to do so with an entirely automated solution simply because the machine does not know the intents of all its users.