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Yes following. But even if LILO were correct, how does that fit with 'order of redundancies'? Isn't the acronym LIFO?

LILO /līˈlō/ abbrev ; Last in, last out (a rough guide to likely order of redundancies)

But isn't it Last in First out? The last person employed is the first person to be retrenched? Anyway probably tangential only

According to Chambers, FIFO, FILO, LIFO & LILO are all linguistically allowable whatever you may think of their relative merits as principles.
As there's no clarification/correction offered with the new puzzle (2695), I'm going to submit 2694 with the clashing letters sharing a cell -- but only because it's by email. I wouldn't waste a stamp on it.

Thank you for the further info. I was thinking of entering the letters LIO?.

Will, I read elsewhere that the clash has been acknowledged, so you should be fine submitting with the two letters sharing a cell. That’s what I did.