It doesn't resolve conflicts. There is another PVR that does that, but it is very difficult to do, and quite difficult to retrofit in to tvh without impacting performance on slow devices since that PVR needs to make numerous passes finding the ideal tuner and timeslot to record the most programmes.
So, the user might want tuner2 to record programme A, but it can only use it if it's in timeslot X, but then that means programme B can't be recorded so it moves it to timeslot Y, but that then conflicts with programme C that is only on at that time, but if you recorded at timeslot A then you could also record programme D and programme E...You get the picture. Multiply that by a few hundred thousand epg events, a few thousand repeats, a hundred recording rules, and maybe three different sources (dvb-t, t2, s2) and you can see it can get slow to find the optimal recording slots.
In tvh, if you have a conflict then the one that is recording will continue recording, unless the conflicted recording is a higher priority in which case the earlier recording will be stopped. I can't remember if the stopped recording then gets rescheduled.
If it happens that recording A is only shown once, B is higher priority but repeated in the week, then B would still cancel A since you've said it is a higher priority.
In theory, we could do a simple look-ahead at the cancellation point and say "it's repeated, so don't cancel", but that could be confusing to people who set priorities, and might cause problems if the later repeat also had conflicts.
For many people, it's cheap nowadays to just add another tuner (like the xbox tuner), or re-record on one of the many repeat channels, so it's not as much an issue for many as it would be say ten year ago.