Version conflicts arise when local files and their cloud copies diverge due to simultaneous edits in different locations or offline changes syncing later. Services like OneDrive, Dropbox, or Google Drive automatically try to resolve these by comparing timestamps. When unable to determine the latest version, they create duplicate files (e.g., naming them "FileName (Conflicted Copy)"). This differs from standard saving as it involves coordination between your device and a central server.

A common scenario is two teammates editing the same proposal locally: saving later causes one's changes to be saved as a conflict copy. Similarly, editing a presentation offline on a plane, then saving it once online while someone else updated the cloud version remotely, forces the service to preserve both versions. These conflicts regularly occur in teams using collaborative cloud storage across various industries.

Modern sync clients offer conflict resolution interfaces showing both versions, allowing manual merging or choosing one to keep. While automated timestamp resolution handles many cases, manual intervention is needed for complex changes. Limitations include potential data loss if the wrong version is chosen unintentionally. Best practices include enabling version history, syncing frequently before major edits, and using built-in conflict resolution tools carefully. Backup important files separately before resolving conflicts.