Yes - I do my updates with the update applet in the panel. Not sure that is really relevant as the update also fails using Yast Online update - unless the resolution to switch to opensuse branding instead of upstream branding is selcted. Must be some bug in the openSUSE-2014-746-1.noarch as the detailed error message I have provided indicates. I have no idea why it conflicts - that is why I have posted the problem here..