the current file is in the "MERGE" section of VS Code's version control panel
From what I see in your screenshot, there is indeed a file in the "MERGE" section. I can't really tell whether that is also the file you've opened (Address.js).
Address.js seems to have no conflict markers. In git, conflict markers look like this:
<<<<<<< HEAD
...
=======
...
>>>>>>> master
In your case it seems like the change was merged by git automatically, without conflicts, which means the toolbar you're looking for won't show here.
I hope this help somebody. If the Accept Current Changes and stuff does not appear when git rebasing.
Just cut the greater than >>>>>>>> [Commit message] and paste it in any lines after the equal ======= signs and within those signs are the codes for Accept Incoming Changes.
I had the same problem after having some strange update issue with vscode.
I just had to uninstall and install the latest(1.27.1 at the time of writing) version of vscode and it worked again.
First, as I found out, there are two types of related views, a diff/compare view (red/green lines) and a conflict (azure lines as seen in you gif) view.
IF you have a merge conflict, the file in the sidebar will be put under "MERGE CHANGES", and you can click it and it opens like a regular file (just the filename in the tab and nothing else).
However, I had a problem of not seeing any conflict highlighting or toolbar to accept or revert changes, until I figured that it doesn't scroll to the conflict automatically (I had a 40k lines file), and the only way you can spot conflicts as far as I can see, is in the scrollbar with small azure colorings. Then when you scroll to them, the conflict and related actions appear. That's on VS Code, I think, to implement such changes (auto scroll to first conflict, as well as separate buttons to go to next/previous conflict). There are keybind options, though.
Disabled old conflict decorators, caused by automatically enabled git merge editor is no longer an issue. With the new release the merge editor and the old inline experience can now be used together.
If you still can't see "Accept Change(s)" after updating VS Code, refer to answer by Bruno Monteiro.
Legacy (July 2022 - version 1.70):
You may not also be able to see "Accept Change(s)" because recently VS Code introduced Git merge editor, which is now enabled by default.
It allows you to view and resolve merge conflicts by clicking on a conflicting file in the Source Control view instead. You can turn it off to go back to "Accept Change(s)", though I think it's better.
Add this line to VS Code user settings.json to turn merge editor off: "git.mergeEditor": false
What resolved this for me was to disable Git Merge Editor. You can find this in File > Preferences > Settings and then search for Git Merge Editor.
After unticking the box, you should restart VS Code.