merge-file: correctly open files when in a subdir

merge-file: correctly open files when in a subdir

run_setup_gently() is called before merge-file. This may result in changing
current working directory, which wasn't taken into account when opening a file
for writing.

Fix by prepending the passed prefix. Previous var is left so that error
messages keep referring to the file from the user's working directory
perspective.

Signed-off-by: Aleksander Boruch-Gruszecki <redacted>
Signed-off-by: Junio C Hamano <redacted>