Using IEqualityComparer for Union

A slightly simpler way:

• it does preserve the original order
• it ignores dupes as it finds them

Uses a link extension method:

   formatIssues.Union(groupIssues).DistinctBy(x => x.ColumnIndex)

This is the DistinctBy lambda method from MoreLinq

public static IEnumerable<TSource> DistinctBy<TSource, TKey>
     (this IEnumerable<TSource> source, Func<TSource, TKey> keySelector)
{
    HashSet<TKey> knownKeys = new HashSet<TKey>();
    foreach (TSource element in source)
    {
        if (knownKeys.Add(keySelector(element)))
        {
            yield return element;
        }
    }
}

I've just run your code on a test set.... and it works!

    public class InlineComparer<T> : IEqualityComparer<T>
    {
        private readonly Func<T, T, bool> getEquals;
        private readonly Func<T, int> getHashCode;

        public InlineComparer(Func<T, T, bool> equals, Func<T, int> hashCode)
        {
            getEquals = equals;
            getHashCode = hashCode;
        }

        public bool Equals(T x, T y)
        {
            return getEquals(x, y);
        }

        public int GetHashCode(T obj)
        {
            return getHashCode(obj);
        }
    }

    class TestClass
    {
        public string S { get; set; }
    }

    [TestMethod]
    public void testThis()
    {
        var l1 = new List<TestClass>()
                     {
                         new TestClass() {S = "one"},
                         new TestClass() {S = "two"},
                     };
        var l2 = new List<TestClass>()
                     {
                         new TestClass() {S = "three"},
                         new TestClass() {S = "two"},
                     };

        var dupComparer = new InlineComparer<TestClass>((i1, i2) => i1.S == i2.S, i => i.S.GetHashCode());

        var unionList = l1.Union(l2, dupComparer);

        Assert.AreEqual(3, unionList);
    }

So... maybe go back and check your test data - or run it with some other test data?

After all - for a Union to be empty - that suggests that both your input lists are also empty?