The project manager has asked for a report to check whether there are any conflicts...

In PRINCE2, baselines are used to establish a reference point for the agreed state of products, against which actual progress can be compared and managed. By requesting a report to check for conflicts between the agreed and actual states of products, the project manager is effectively applying the concept of baselines within issue management. This helps in identifying deviations from the agreed deliverables and initiating corrective actions to address these discrepancies.References: (PRINCE2® 7 Foundation Handbook, AXELOS)