Developer A makes the button red, developer B changes the label from "OK" to "Accept", both inside the same function.
You can't just pick one or the other, you have to combine the changes.
Or two developers add two different fields to a type. Or ...
Sadly the docs only have placeholders for "Concurrent work and resolving edit conflicts" and "Pull requests and collaboration". Would be very interesting to read the developers thoughts on this.
The system seems to support patches, forking and merging.