Sometimes you might find that you have Issued more Licenses than what was actually bought. And this leads to a conflict. One of the reasons why this happens is that some people might have left the organization but the licenses are still with them. At the same time new employees have come and new licenses were assigned.
So the ways in which the conflict can be resolved is to either manually remove the licenses for each user who has left the organization, or to delete all the users who are no longer in the organization. Once it is deleted, the licenses are automatically reclaimed.