The problem was that the scene information was fundamentally visual (assets arranged in 3D space) so even a diffable text format wouldn't help you much. On the other hand, scenes are large enough that you often would want to work on them in parallel with other people.
I believe their first solution to that was the Asset Server that supported locking. But that still doesn't give two people the ability to work on a scene concurrently.
Eventually, some users went and developed a custom diff/merge tool to solve the problem.
https://discussions.unity.com/t/scene-diff-ease-your-sufferi...