I'm not sure why the MergedDictionary doesn't work, but if I add the style as a standalone resource it works fine.
<Application x:Class="App"
xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
xmlns:local="clr-namespace:Excavator"
StartupUri="MainWindow.xaml">
<Application.Resources>
<ResourceDictionary Source="Resources/Styles.xaml" />
</Application.Resources>
</Application>