I also had the same doubt, but what we see in ER model to find how many tables would be there, and what are the conditions for a relation to be in 3rd NF or any NF. Every NF is the subset of its preceding NF. So in 3rd NF, we have to see whether the relation is in 2nd NF that means if the candidate key is composite in the relation table then after merging the tables all the attributes of that particular table must be fully dependent on that composite key, not on only 1 key of the composite key. But in many-many relations after merging the entity table attributes would be only fully dependent on that table's primary key not on another table's primary key, so it violates the rule of 2nd NF, hence it also violates the 3rd NF, so this relation can’t be merged.
Now coming to your last question that” is that general idea always works or should we apply the basic intuition every time while solving these questions” I would suggest if your concept is crisp, always go with your concept, it will never betray you. Practice questions using the concepts, in the beginning, it will take time to solve questions, and later you will get the speed.
All the best to you.
And as @ankit3009 said “If everything makes sense or not, please let me know. And if I am getting something wrong then I am open to discussion”
Thank You.