On pulling in an update with a conflict on menu item one does get a notice about an unstable state.
Editing the menu shows:
"Manipulation of a menu tree having links with pending revisions is not supported, but you can re-enable manipulation by getting each menu link to a published state."

Saving the item makes the notice disappear but then there is a conflict. There seems to be no way to resolve this conflict.
In my test case both sides dragged the item to the same spot and I want to resolve this by discarding my changes.

This issue completely cripples content staging unless I want to force deploy everything

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karel010 created an issue.