I use GitHub and TortoiseGit. It works as well as can be hoped... I turn on LFS for nearly all of the PLUS+1 files since they are nearly all binaries. I also set Tortoise to use the Danfoss compare scs as my diff tool. The LFS works properly and transparently where it will get old versions for compares if they are not on your local computer.
You can of course merge files with PLUS+1, just as you can merge any binary file. Any binary merge in Git is a bit ugly which is why for binary files there are locks in Git. This is probably the best practice, however, it does limit how many developers can work on something at once.
Danfoss also has the "project view" which helps to know which of the many files need to be under version control and which are junk artifacts that can be ignored.
The problem with binaries is that you have to rely on the binary maker for diff and merge tools. Danfoss does have a diff viewer, but it is a little buggy and not as reliable as one would hope for accurately finding diffs. It also cannot tell the difference between "graphical" changes and functional changes. For example, if you move something on a page that doesn't change the underlying code (say for formatting reasons), it will still highlight the change and you can't segregate between functional and non functional changes.
Danfoss does not offer a merge tool. You have to do it yourself manually where you open instances of the diff tool, module viewer, and GUIDE and do the merge manually. It isn't too bad because as you work, you can just re-launch the diff tool as you go to confirm the changes.
I also looked at PlasticSCM that is designed for more novice users as well as being focused on binaries, but it seems that for the price, Git + Tortoise is probably the way to go. I'll also say, I find Github desktop pretty useless since it is so focused on being a merge tool that it is really a bit pointless for GUIDE and I find Tortoise more helpful.