1. How might the work WMDE is doing to improve the workflow for resolving edit conflicts on talk pages affect the work the Editing Team is doing, and has planned, for the Talk pages project?

It doesn't. WMDE's work on edit conflicts only affects tools that use MediaWiki's normal workflow for edit conflicts – primarily the wikitext editor and visual editor. DiscussionTools' reply widget does not, it either automatically resolves the conflict or displays an error message advising users to reload the page (T240643#5943549).

2. What adjustments – if any – should the Editing Team consider making to their plans to ensure the work WMDE is doing to improve the workflow for resolving edit conflicts on talk pages does not negatively impact the work the Editing Team is doing, and has planned, for the Talk pages project?

We don't need to do anything. I think the two projects don't affect each other, even though they are trying to solve the same problem.

In a way, I feel like our DiscussionTools will make WMDE's talk-page edit conflict screen redundant. But our solution will probably arrive later, and there will probably be some folks who will prefer using the wikitext editor for replying anyway, so their improvement is still nice.

This is helpful; thank you, @matmarex.

Just a bit of clarification before resolving this task...

In T247863#5981218, @matmarex wrote:

In a way, I feel like our DiscussionTools will make WMDE's talk-page edit conflict screen redundant.

By "redundant" are you referring to the fact that there will be two distinct conflict resolution workflows?

1. Resolving an edit conflict someone encounters in the process of using DiscussionTools (e.g. Replying or Starting a new discussion)?
2. Resolving an edit conflict someone encounters in the process of using full-page wikitext talk page editing?

Yes. And people using DiscussionTools will never see the talk-page edit conflict screen.