'git apply' failed with code 1: patch does not apply error in SourceTree on Stage Hunk

Question

When I attempt to stage a hunk or some lines, I get the following error in SourceTree on OS X:

Staging entire files works fine. The path of this repo lives on a Windows virtual machine running in Parallels.

I suspect a whitespace or newline issue. How do I make this work without reverting to hg-git?

Answer 1

I changed the setting back to 'Show Whitespace' and things seem better.