So the way you can do it in VSCode is to open the conflict in their smart merge editor... Often it is actually smart enough to highlight the relevant change but if not each of the left/right editors has a button in its toolbar to diff it against the base.
Not the easiest to access but better than copying/pasting (which is what I also used to do).
Not the easiest to access but better than copying/pasting (which is what I also used to do).