A conflict file is a rescue, not an error.
When both computers save the same file at nearly the same moment, the newer save keeps the file's name. The other version is preserved next to it:
report.docx report.conflict-20260801-104512-123456789.docx
The pattern is <name>.conflict-<UTC date>-<time>-<fraction><extension>. Exactly one appears per collision, and it syncs like a normal file, so both computers hold both versions. Losing an edit silently is the thing this mechanism exists to prevent; it also fires when a save would have overwritten a version whose content this machine never fetched.
Do the resolution on one computer. The result syncs; there is nothing to repeat on the other side.
Conflict files appear only when both sides race on the same file inside a moment. Turn-taking never produces them: one person saves, the other opens later. If you see them often on one file, agree on ownership of that file, or split the work into separate files. There is no setting to tune; the fix is the workflow.
A database or a project library that a program holds open continuously is not protected by conflict files; it is many small writes, not saves. Follow the database hand-off pattern for those: one machine at a time. Background on the whole model: Edits, versions, and conflicts.