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According to Mihai, allowing conversion (and the other staff filings) was explicitly allowed despite having an existing draft.
Specifically, the business is not expected to be in a good state when a record conversion is started (ie, the conversion is filed to fix the state), so the scenario above should not normally happen.
You can see, in the following screenshot, that I am able to start a record conversion filing. It should not be allowed.
Private Zenhub Image
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