diff --git a/mercurial/context.py b/mercurial/context.py
--- a/mercurial/context.py
+++ b/mercurial/context.py
@@ -1808,10 +1808,11 @@ class workingfilectx(committablefilectx)
         wvfs.audit(f)
         if wvfs.isdir(f) and not wvfs.islink(f):
             wvfs.rmtree(f, forcibly=True)
-        for p in reversed(list(util.finddirs(f))):
-            if wvfs.isfileorlink(p):
-                wvfs.unlink(p)
-                break
+        if self._repo.ui.configbool('experimental', 'merge.checkpathconflicts'):
+            for p in reversed(list(util.finddirs(f))):
+                if wvfs.isfileorlink(p):
+                    wvfs.unlink(p)
+                    break
 
     def setflags(self, l, x):
         self._repo.wvfs.setflags(self._path, l, x)
diff --git a/tests/test-audit-path.t b/tests/test-audit-path.t
--- a/tests/test-audit-path.t
+++ b/tests/test-audit-path.t
@@ -109,8 +109,7 @@ attack back/test where back symlinks to 
 #else
 ('back' will be a file and cause some other system specific error)
   $ hg update -Cr2
-  back: is both a file and a directory
-  abort: * (glob)
+  abort: $TESTTMP/target/back/test: $ENOTDIR$
   [255]
 #endif