Merging sgml-common-0.6.3 failed with warning that "/etc/sgml/sgml-ent.cat was not found". Sure enough there is no sgml-ent.cat file. Merging the older sgml-common-0.6.1-r1 installed the required sgml-ent.cat file and then the latest sgml-common-0.6.3 could be sucessfully merged. There appears to be an unintended dependency on the older sgml-common. It seems to me that either the dependency needs to be made explicit or the 0.6.3 ebuild corrected to install the missing cat file.
Nope. It is because the older had a braindead way to remove the catalogs, and in the wrong order. What you are experiencing is 0.6.3 bork. If you really want to test it, make sure you only have -r1 installed. remerge it a few times (old -r1 should be unmerged no problem). Unmerge and then remerge it. Cp it over to -r2, and then merge -r2. In all these cases it should work fine.