From Outlook help
Conflicts Contains all the multiple copies of conflicting items in
your mailbox (mailbox: Location on a Microsoft Exchange server where
your e-mail is delivered. Your administrator sets up a mailbox for each
user. If you designate a personal folder file as your e-mail delivery
location, messages are routed to it from your mailbox.). An InfoBar at
the top of the original item advises you that a conflict for this item
exists. The conflicting item is stored in the Conflicts folder. Clicking
the InfoBar will bring up a list of conflicting items and allow you to
resolve the conflict by determining which item you want to keep.
If you have made changes to an item, but are not seeing the updated item
in your Navigation Pane folders, check for an InfoBar notice at the top
of the item. If you cannot find the original item, check the Conflicts
folder. It is possible that your changes caused a conflict with the
original item, and the changes will exist in the Conflicts folder.
