Can anybody explain why in the attached model (merge issue part) I am still seeing traces of the second feature (boss-extrude1) after I do a cut (cut-revolve2) to remove the excess material that extruded into the inside of the first features (revolve1) internal cavity.  And yes I do have "merge" checked for the boss-extrude1 feature.  I have also attached a test model file that does seem to function as expected.

The real issue is that these lines so up on drawing view and make things confusing.