In the master branch there is no file "Alice". Two branches get created. One of them runs sed via find on all files with the name "Alice" and then it creates a file called "Alice" if find doesn't find any files called Alice.

The second branch creates a file called "Alice".

Both want to merge now but unfortunately there is a merge conflict. In this case automatic conflict resolution is impossible so one of the branches has to be discarded (transaction rollback). You can now "rerun" the branch and everything should work on the next merge.

Conclusion: "update + insert where" is not equivalent to "upsert". The former can cause a transaction to fail and must be retried on failure. With "upsert" the database engine has enough information to handle the unique constraint.