I've hit this a couple of times, where pulling with a dirty wdir obsoletes
p1 and updating to the successor results in merge conflicts. The problem was
resolving them failed immediately, complaining that the old checkout was
filtered.
The change in test-rebase-obsolete.t is because there's an outstanding merge
conflict in a rebase operation. The summary prompt to merge seems incorrect for
this scenario, but that's an existing issue.