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How does this conflict with the Central Dogma?

It doesn't; the central dogma was always intended as a jokey simplification of real biology. It was never proscriptive.

Some people took it to heart

The direction of information flow

No? The Central Dogma is about the flow of sequence information: from nucleic acid to protein, and never back again.

It's not about regulatory information.

The direction of genetic information flow. And yes, multiple cases of the Dogma not working that way. That's why it is, literally, "dogma"