You appear to have two issues.
First, when the Text Panel is not wider, you may not see all the buttons. In your screenshot, you can see the Split button, but not the Merge button. They are moved into the 3 dots "overflow" menu. So make the Text panel wider, or look in the overflow menu.
However, I see a bug: If the Split button shows, the Merge button does not show in the overflow menu, only the Split button. The Merge button should show even if greyed out. So make it even narrower (so the Split button does not show - then the Merge button also shows in the Overflow), or make it wider so the merge button shows in the panel.
The second problem, is that since about version 23.4, you must select the captions you want to merge. Previously, you could just select one and it would merge it with the next. Just select the captions you want to merge (now more than 2) in the Timeline or the Captions tab.
See this post:
https://community.adobe.com/t5/premiere-pro-bugs/merge-captions-suddenly-gray-and-unlcikable/idc-p/1...
@alexander-riss @Kerstin Ebert Is the merge button not showing in the overflow a bug?
Stan
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