And I'm pretty sure version control only works with .esm's right?
But you don't provide your work in ESM format. You use ESPs to work in and merge and the result of the merge (check in) is an ESM. VC will handle the conversions for you. Provided you can get it working and figure out how to use it. It's not an easy thing to get set up and get working correctly, or to use either.
Ok, I'll back out. Maybe somebody who has been able to actually use it successfully can help. Once I was finally able to make it check in, it never gave me anything usable. It does seem to take forever, and it looks like it is done long before it actually is. Clearly not user friendly. best of luck.