I'm getting this issue too. My set up is a single workstation, no networked drives or anything like that. I have separate media and scratch disks, but I create and save my project files in the Creative Cloud folder on my main SSD. The idea being, of course, that it will serve as an automated backup, so I don't have 'Save Backup Project to Creative Cloud' activated.
It didn't used to happen, but now it's a regular thing, every project. After an editing session of a few hours I can have 8 or 10 'Conflicted Copy' projects alongside the original. It's not a MASSIVE inconvenience to delete them, but you do have to be careful of which one is the most up-to-date, so the potential is there for accidentally deleting the most recent work, which isn't good.
I, too, don't like the solution of 'don't use this method', as it seems to me to be the best and most failsafe way to use projects files and the cloud, if it were to work as it should.