None of this contradicts anything about God being all-merciful. I’ve heard it said that God even exercises a type of mercy towards the damned, in that he often limits the amount of evil he allows them to commit, often by a sudden death, thereby decreasing their eternal punishment. (Keep in mind He has full knowledge of which souls will, or will not, repent at the end). In that vein, each rejected grace does additional harm to a soul, putting it in a worse case than if the grace had never been offered. Therefore, it may be the case for some, that they are ultimately better off not being offered particular graces of repentance, simply because their eternal punishment will be less than it otherwise would be. Therefore, for that particular soul, not being granted that grace is an act of mercy. Of course, God alone has the wisdom to discern the particulars of any of this for any individual person.