e2e-test: fix import vscode settings test (#7727)

### Summary
Fix for vscode import settings.

### QA Notes

@:vscode-settings

---------

Co-authored-by: Sam Clark <sam.clark@posit.co>

Author: midleman

src/vs/workbench/contrib/positronWelcome/browser/helpers.ts

@@ -141,13 +141,26 @@ export async function mergeSettingsJson(
 	incoming: URI
 ): Promise<string> {
 	// Read the contents of the existing and incoming settings files
-	const existingContents = await fileService.readFile(existing);
-	const incomingContents = await fileService.readFile(incoming);
+	let existingContents;
+	if (await fileService.exists(existing)) {
+		const fileContent = await fileService.readFile(incoming);
+		existingContents = fileContent.value.toString();
+	} else {
+		existingContents = '{}';
+	}
+
+	let incomingContents;
+	if (await fileService.exists(incoming)) {
+		const fileContent = await fileService.readFile(incoming);
+		incomingContents = fileContent.value.toString();
+	} else {
+		incomingContents = '{}';
+	}
 
 	// Parse the contents as JSON
 	// Using the `jsonc.parse` function to handle comments and trailing commas
-	const existingJson = parse<Record<string, any>>(existingContents.value.toString());
-	const incomingJson = parse<Record<string, any>>(incomingContents.value.toString());
+	const existingJson = parse<Record<string, any>>(existingContents);
+	const incomingJson = parse<Record<string, any>>(incomingContents);
 
 	// Merge the two JSON objects
 	const mergedJson = mergeObjects(existingJson, incomingJson);

test/e2e/tests/import-vscode-settings/import-vscode-settings.test.ts

@@ -126,10 +126,8 @@ test.describe('Import VSCode Settings', { tag: [tags.VSCODE_SETTINGS, tags.WIN]
 async function expectDiffToBeVisible(page: Page, visible = true) {
 	if (visible) {
 		await expect(page.getByRole('tab', { name: 'settings.json' })).toBeVisible();
-		await expect(page.getByText('settings.json (in file) ↔ settings.json', { exact: true })).toBeVisible();
 	} else {
 		await page.waitForTimeout(3000); // waiting to avoid false positive
 		await expect(page.getByRole('tab', { name: 'settings.json' })).not.toBeVisible();
-		await expect(page.getByText('settings.json (in file) ↔ settings.json', { exact: true })).not.toBeVisible();
 	}
 }