Is there a hidden setting by chance that allows you to navigate conflict palette choices uses arrow keys?
There is not, though it would be nice if there was. If arrow key navigation is important to this particular workflow, the best native KM solution may be to use Prompt With List, assuming it's possible to adapt it for whatever this use case may be.
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Palettes, including the conflict palette, have no concept of selection, and so no concept of using the arrow keys to move a the selection.
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This is unfortunate. I would like to use the same keybinding for text actions. Currently it's inconvenient to use the mouse to select the correct item:
I guess I need to investigate how to use the prompt list @gglick
One setting you can use to make it more convenient is:
Place conflict palette under mouse
You're missing the fact that conflict palettes have a built-in method of keyboard activation.
See the highlighted letters? These let you directly select a singular item and quickly drill down through multiple items with a similar name.
“So instead, it displays the Conflict Palette listing all the triggered macros and lets you select the desired macro, either by clicking on it or by typing a letter that narrows that palette down until only one macro remains at which point that macro is triggered.”
See this topic to get an idea of what you can do with Conflict Palettes:
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Thanks! This solves my problem 
.
I will just rename Base64 to start with decode so it is faster to activate those that start with same word.
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I found this topic because I wanted the same functionality. But since learning that it's not possible, I've just figured out a pretty decent solve for myself.
It's: "Trigger Macro by Name"
Remove the shared hot key from all the actions that you want in your conflict palette and put them in their own group. Then make an action that brings that group up by giving it the Trigger Macro by Name action and selecting the group you want to target. Then you can use the arrow keys to select the action you want. It does seem to default to alphabetical order but I'm fine with that.
Hey Aaron,
That works.
You can also use the Prompt With List action to roll your own. (You have to supply macro names and/or UUIDs when using this method.)
You might also want to look at @DanThomas' macro:
MACRO: Execute (Trigger) Macro by Name (Spotlight)
-Chris