Sorry, for the slow reply:
I misread your original post and was thinking of Backup History, not History Diff. When History Diff comes up, it has the Version combo box on the left set to the most recent version. There shouldn't be any buttons to merge from the right to the left unless you select "Local file" in the Version combo box.
I added code to draw a box around the current line for Backup History and History diff. It will be in v2019 Beta 3 - but I can send you a patched macro for 23.0.2 if you prefer. When Diff (or any feature that does a diff really) first comes up, it puts the cursor at the first difference. History Diff and Backup history are sort of different animals, because when you move through different versions at the top of the file, constantly putting the cursor at the first difference when you have already positioned the cursor would be annoying. So it attempts to leave the cursor in place after it first comes up.
Merge All should merge all of the differences from whichever version is on the right, which is the one selected in the list at the top left, to the current local file. It is the same as clicking "Copy Block"/"Delete Block" from the top of the file to the bottom of the file. Is that not what you are seeing?
I will look into an option for putting the local file on the right. The version control diff puts it on the left as well.