I found a thread in the forum which spoke to my soul - Conflict Palette gives negative vibes. I kept interpreting it as an "Error Palette" so why would it show in an action when I've done nothing wrong?? I've since recalibrated my interpretation of it and its purpose.
I was running it as normal. It was definitely a quirk. I didn't change anything and it's now working perfectly. The reason shall remain a mystery. But the good news is it's working as I want.