I had some interesting moments with Merlin back in May at Aiken Canyon, when I wasn't quite sure just what warbler I was hearing (only one individual singer)... so I opened it up, and every time the warbler sang Merlin simultaneously said Yellow Warbler AND Virginia's Warbler. After first IDing both at once, with each repeated song Merlin lit up both together! I listened VERY carefully, and only one bird was singing.
So I felt sympathetic with (but surprised at) its indecision, and shut it off. The dry habitat suggested Virginia's over Yellow, but there had been repeated spring rains over the past week, as evidenced by fresh mud & even standing water at one spot in the normally dry creek bed... and migration was underway, so I finally decided this bird was a Yellow (& then later, further along the trail, I did hear and see a Virginia as well.
But I wonder if this is a case like yours Paula, where if I had moved closer Merlin would have made a clear decision. I generally think of a Yellow warbler's song as louder & more emphatic than a Virginia's, but from further away maybe the differences fade?
My 73-yr-old ears & 58 years of birding experience are still (in most cases I think) better than Merlin's, but it is still a remarkable & useful (& remarkably improving--unlike yours truly) tool!
Marty Wolf
NW Colorado Springs