They're not really conflicting permissions in JIRA speak - a Condition is not a permission, it's a rule to allow/prevent something (they can be based on permissions)
Some permissions in JIRA are actually a bit of a hangover from very old versions where you didn't have "conditions". The best example of this is "Close issue" - in very old JIRAs, this really did mean it, the close transition had a hard-coded "you can only use this if you have close permission". When the workflows were made more flexible, it got binned, and you now have to have a specific condition added to the workflow to implement that.
This does mean that there isn't really a "conflict" - it's a single rule based on a permission, rather than a permission and a rule. If you do think of them separately, then it's the Condition that matters in this case, because it says "only admins". But you could change that to "only admins, or people with close permission". Or if you wanted to be really odd (and probably useless) do something like "people with edit permission". Or (more usefully), "people with create issue permissions".
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