If you are trying to merge data from separate layers, I think you are looking for the Merge (or Append) GPT tool, not the Edit, Modify, Merge.
Edit -> Modify -> Merge:
"The Merge tool combines two or more features on the same layer into an existing feature or unions two or more features into a new feature. Features that do not touch or overlap, merge as parts of a multipart feature. This tool is available in the Modify Features pane."
Data Management -> Merge Geoprocessing Tool:
"Combines multiple input datasets into a single, new output dataset. This tool can combine point, line, or polygon feature classes or tables."
![RhettZufelt_1-1721833600019.png RhettZufelt_1-1721833600019.png](https://community.esri.com/t5/image/serverpage/image-id/110514iF43FED675B638DBA/image-size/medium?v=v2&px=400)
R_