Bench update problem after customize files

ERPNext uses git for managing updates. If you make any changes in the core files directly, it creates a conflict when pulling the latest changes since there is a difference of the changes it is expecting v/s those made by you.

The reset option overrides the changes made.

You can stash the changes and re-apply them every time if you want to maintain the customization done. Else look at other methods to achieve it.

https://git-scm.com/docs/git-stash