You can't merge now - the flag is gone.
I've been using vertical tabs for years. The Vertical Tabs extension in Opera. The extension sidebar has to be visible all the time with my browser tabs.
The issue is not the merging though, but the pinned sidebar pane (with the extension content) occupying so much space vertically, from the top to bottom. The main browser pane along with the URL and favorities bars are much shorter now. It just doesn't make much sense. Not useful.
There should be an option for this behavior.
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RE: Extensions Sidebar in browser option disappearedOpera for Windows
@leocg OK, I know, but why no option to have the bar below, like previously? I mean not to take the full height? Damn you Opera developers! Now the address bar +extension icons and the bookmarks bar are shorter. Why???