Yes - it’s a (near-perfect) combination: Confluence®1 is a powerful, yet easy-to-use collaboration platform, a “wiki-on-steroids”.
You can easily map the arc42 structure on Confluence® pages, and even use predefined templates to setup the complete arc42 structure in a breath (see question F-8 (Confuence tools) for details on available tooling).
I (Gernot) used Confluence® to generate various stakeholder-specific output from a single Confluence® “arc42 repository”, which saved a lot of documentation effort, as the development team needed only to maintain this single source-of-truth.
In Confluence®, you can tag (label, mark) pages, so it becomes very simple to add arbitrary meta-information to certain parts of your documentation. Use this e.g. to add version/release-specific information, or to distinguish between “already-implemented” and “planned-for-the-future” information.
Confluence® does not (!) provide out-of-the-box diagramming features, but numerous tools are available to the rescue, see question F-9 (Confluence® Diagramming tools) for details).