diff3 conflict is basically what you always want to see, either by setting it as the default as per stackoverflow.com/questions/27417656/should-diff3-be-default-conflictstyle-on-git:
git config --global merge.conflictstyle diff3
or as a one off:
git checkout --conflict=diff3
With this, conflicts now show up as:
++<<<<<<< HEAD
 +5
++||||||| parent of 7b0f59d (6)
++3
++=======
+ 6
++>>>>>>> 7b0f59d (6)
7b0f59d is the SHA-2 of commit 6.
instead of the inferior default:
++<<<<<<< ours
 +5
++=======
+ 6
++>>>>>>> theirs
We can also observe the current tree state during resolution:
* b4ec057 (HEAD, master) 5
* 0b37c1b 4
| * fbfbfe8 (my-feature) 7
| * 7b0f59d 6
|/
* 661cfab 3
* 6d748a9 2
* c5f8a2c 1
so we understand that we are now at 5 and that we are trying to apply our commit 6
So it is much clearer what is happening:
  • master changed the code from 3 to 5
  • our feature changed the code from 3 to 6
and so now we have to decide what the new code is that will put both of these together.
Let's say we decide it is 5 + 6 = 11 and continue rebasing:
git add .
git rebase --continue
We now reach:
++<<<<<<< HEAD
 +11
++||||||| parent of fbfbfe8 (7)
++6
++=======
+ 7
++>>>>>>> fbfbfe8 (7)
and the tree looks like:
* ca7f7ff (HEAD) 6
* b4ec057 (master) 5
* 0b37c1b 4
| * fbfbfe8 (my-feature) 7
| * 7b0f59d 6
|/
* 661cfab 3
* 6d748a9 2
* c5f8a2c 1
So we understand that:
  • after the previous step we added commit 6 on top of 5
  • now we are adding 7 on top of the new 6 (which we decided would contain 11)
and after resolving that one we now reach:
* e1aaf20 (HEAD -> my-feature) 7
* ca7f7ff 6
* b4ec057 (master) 5
* 0b37c1b 4
* 661cfab 3
* 6d748a9 2
* c5f8a2c 1