After modify/delete merge conflict happens in a file skipped by sparse
checkout, "git reset --merge", which implements the "--abort" actions,
and "git reset --hard" fail with message "Entry * not uptodate. Cannot
update sparse checkout."

As explained in [1], the up-to-date checker mistakenly treats conflicted
entry which does not exist in HEAD as still skipped by sparse checkout.

Use the fix suggested in [1]. Also, add test case which verifies the
issue is fixed.

[1] https://public-inbox.org/git/20180616051444.ga29...@duynguyen.home/

Fix-authored-by: Duy Nguyen <pclo...@gmail.com>
Signed-off-by: Max Kirillov <m...@max630.net>
---
* used the right fix. Probably there should be sign off?
* add extra check that state is correct after the reset. it is literally
  different from the one described by Junio but should be equivalent for this
  case

 t/t3035-merge-sparse.sh | 59 +++++++++++++++++++++++++++++++++++++++++++++++++
 unpack-trees.c          |  2 +-
 2 files changed, 60 insertions(+), 1 deletion(-)
 create mode 100755 t/t3035-merge-sparse.sh

diff --git a/t/t3035-merge-sparse.sh b/t/t3035-merge-sparse.sh
new file mode 100755
index 0000000..0c0b433
--- /dev/null
+++ b/t/t3035-merge-sparse.sh
@@ -0,0 +1,59 @@
+#!/bin/sh
+
+test_description='merge with sparse files'
+
+. ./test-lib.sh
+
+# test_file $filename $content
+test_file () {
+       echo "$2" > "$1" &&
+       git add "$1"
+}
+
+# test_commit_this $message_and_tag
+test_commit_this () {
+       git commit -m "$1" &&
+       git tag "$1"
+}
+
+test_expect_success 'setup' '
+       : >empty &&
+       test_file checked-out init &&
+       test_file modify_delete modify_delete_init &&
+       test_commit_this init &&
+       test_file modify_delete modify_delete_theirs &&
+       test_commit_this theirs &&
+       git reset --hard init &&
+       git rm modify_delete &&
+       test_commit_this ours &&
+       git config core.sparseCheckout true &&
+       echo "/checked-out" >.git/info/sparse-checkout &&
+       git reset --hard &&
+       ! git merge theirs
+'
+
+test_expect_success 'reset --hard works after the conflict' '
+       git reset --hard
+'
+
+test_expect_success 'is reset properly' '
+       git status --porcelain -- modify_delete >out &&
+       test_cmp empty out &&
+       test_path_is_missing modify_delete
+'
+
+test_expect_success 'setup: conflict back' '
+       ! git merge theirs
+'
+
+test_expect_success 'Merge abort works after the conflict' '
+       git merge --abort
+'
+
+test_expect_success 'is aborted properly' '
+       git status --porcelain -- modify_delete >out &&
+       test_cmp empty out &&
+       test_path_is_missing modify_delete
+'
+
+test_done
diff --git a/unpack-trees.c b/unpack-trees.c
index 3a85a02..eb544ee 100644
--- a/unpack-trees.c
+++ b/unpack-trees.c
@@ -1246,7 +1246,7 @@ static void mark_new_skip_worktree(struct exclude_list 
*el,
                if (select_flag && !(ce->ce_flags & select_flag))
                        continue;
 
-               if (!ce_stage(ce))
+               if (!ce_stage(ce) && !(ce->ce_flags & CE_CONFLICTED))
                        ce->ce_flags |= skip_wt_flag;
                else
                        ce->ce_flags &= ~skip_wt_flag;
-- 
2.0.0

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