This was because they had too much property to be able to live together. Because of all their livestock, the land where they were staying could not support them. Ki-hayah rechusham rav mishevet yachdav velo yachlah erets megureyhem laset otam mipeney mikneyhem.
settled in... See note on Genesis 32:4. Although Esau may have lived in Seir earlier, he could have now inherited the Hebron area, but he chose to settle in Seir (cf. Josephus 2:1:1). Other sources speak of a war between Esau and Jacob (Sefer HaYashar, Yov'loth 38:10).
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