That's odd. I use git for my projects and so far so good. Nothing's wrong, I can fallback to any revision without any problem. I also make branches for every feature I need to make and that too have no problem (moving between branches, merging 2 branches together, etc).
Is the problem when opening a caproj file, maybe due to conflict resolution, or something else? caproj are just xml, you can edit it on Notepad to have a look. You can also do that for events and layout, but be careful, you might cause the project to not open if you made a mistake editing..