Keyboard Maestro has no concept of priorities for active macros or trigger.
There are simply too many ways macros can become active or inactive to be able to sensibly define when a macro trigger should be sufficiently more pre-eminent that another that the Conflict Palette should not be used.
@peternlewis, I think @nikivi may mean that if a Palette is showing, then any hotkey pressed should be for macros on the palette rather than a non-palette macro, much like any single key pressed goes to the palette instead of the frontmost app window.
This doesn’t require any analysis of the user’s actions or priorities. It is a simple rule.
What if you open a palette, and then run a macro that explicitly activates another macro group, or explicitly enables a macro? What if the palette is always open, and you activate a macro group for one action?
In those cases, if one macro was going to take priority I would expect it not to be the one in the palette.