You should understand what Paolo said. You're living a wrong life here. Version control is fine for code text, but not for UML models.
q.
Yes and No.
I use version control only in the case that I have different repositories sharing the same part of a model.
We only go forward, never go back, and we never (try to) merge.
In these circumstances using version control is perfectly possible.
This is just a bug. If the users always uncheck all the checkboxes in the dialog there is never a a problem.
For this particular client I'm not even interested in fixed the bug. Some kind of option to never restore external references would be find for me.
There is an option in the version control setting with regards to external references, but that does not have the effect I thought it would have. The dialog still appeared despite turning off the setting.
Geert