Cannot set KDiff3 as merge/diff tool in GIT

Recently I have been trying to setup KDiff3 as mergetool. So I fetched the program, installed it and wanted to set it as GIT diff and merge tool.

In order to do that, I executed command:

git config --global merge.tool kdiff3
git config --global mergetool.kdiff3.path "C:/Program Files/KDiff3/bin/diff3.exe"
git config --global mergetool.kdiff3.trustExitCode false

git config --global diff.guitool kdiff3
git config --global difftool.kdiff3.path "C:/Program Files/KDiff3/bin/diff3.exe"
git config --global difftool.kdiff3.trustExitCode false

Which correctly set my config file to this:

[user]
    email = turek1992@o2.pl
    name = Michal Turczyn
[merge]
    tool = kdiff3
[mergetool "kdiff3"]
    path = C:/Program Files/KDiff3/bin/diff3.exe
    trustExitCode = false
[diff]
    guitool = kdiff3
[difftool "kdiff3"]
    path = C:/Program Files/KDiff3/bin/diff3.exe
    trustExitCode = false

...and now I caused conflicts in my branch, trying to open mergetool shows me only this:

And if I press y, file stays with GIT conflict marks anyway, if I press n it simply aborts merge.

And this happens no matter whehter I use

git mergetool --tool kdiff3

or

git mergetool

Note: I always worked with VS for these purposes and it worked just fine.

The question: how to make it work, so KDiff3 correctly picks up confilted files and lets me manage it, just as it should.

Make sure you are referring to kdiff3.exe executable. It is usually placed in main installation directory of KDiff.

In my case it was simply C:/Program Files/KDiff3/diff3.exe

So execute this instead (with corrected paths)

git config --global mergetool.kdiff3.path "C:/Program Files/KDiff3/kdiff3.exe"
git config --global mergetool.kdiff3.trustExitCode false

git config --global diff.guitool kdiff3
git config --global difftool.kdiff3.path "C:/Program Files/KDiff3/kdiff3.exe"
git config --global difftool.kdiff3.trustExitCode false