help: it is 'file://localhost/', not 'file://local/'
The documentation has apparently always been wrong.
Test update logic when there are renames
Update with local changes across a file rename
$ hg init
$ echo a > a
$ hg add a
$ hg ci -m a
$ hg mv a b
$ hg ci -m rename
$ echo b > b
$ hg ci -m change
$ hg up -q 0
$ echo c > a
$ hg up
merging a and b to b
warning: conflicts during merge.
merging b failed!
0 files updated, 0 files merged, 0 files removed, 1 files unresolved
use 'hg resolve' to retry unresolved file merges
[1]
$ cd ..