In the block connection logic we were tracking a vector of transactions found via the mempool that are now conflicted by transactions newly in blocks. This allowed us to potentially find transactions that couldn’t be found through only the wallets own conflict detection. However we were not doing anything useful with this information, essentially only marking the cached credits/debits of the inputs dirty. This wouldn’t change balance calculations though as we weren’t marking txs detected this way as conflicted in the wallet.
In the future we might try to improve the best efforts detection of conflicted txs to use the mempool, but we can always resurrect this code if we find it useful. In the meantime it serves as a confusion since it has no practical effect. Getting conflict tracking correct is very difficult as transactions needed to make the connection may no longer be in the mempool and it’s also important to be able to re-find any txs marked as conflicted if they become unconflicted.
See #8692 for more context.
Please note that the wallet still marks as conflicted txs it can find (anything linked only through wallet txs) and that the mempool still removes all conflicts (and dependents in the mempool).