If you prefer your own Diff/Merge tool over the standard TFS one, here is how to change the TFS configuration. Personally I use DiffMerge by SourceGear.
Note, you can specify .* for the file type extension to use your merge tool for everything.
Associating a diff tool with a file type in TFS
Common Command and Argument Values for different Diff tools for TFS
I had some problems with the Logitech MX Master 3S Mouse with an M1 MacBook Pro, but I had better luck with a Logitech G502 X Mouse