The first bullet indicates that to conform you either line up in full front edge contact with an enemy base, or in overlap. They are equally valid, and the bases that conform will fight in melee, though not always against the base they fought in impact.must pivot and/or shift by the minimum necessary to line up with the enemy bases in contact.
This is then demonstrated in the diagrams in which, in each case, bases in contact move to line up with the enemy base, or overlap position, which is the shortest move necessary to reach a valid conform. The caption you are misquoting is actually part of the follow up where bases that are not in contact move to maintain BG integrity. This causes the outside base (not originally in contact) to end in overlap. You will notice that there are two bases in contact with a single base in that illustration. The base with the shortest move moves into FE contact with the original enemy base, and the other base moves its shortest move which is FE contact with the adjacent base. The emphasis is on shortest move necessary to line up.
In the OP the situation is the same as on page 93 (V2.0) where the left-hand Cav base in contact with the enemy shifts the minimum necessary, to an overlap, because the base on the right is more fully in contact with the enemy base originally contacted. Similarly, on the right, the bases must shift right to line up by the minimum necessary but are blocked by enemy, and do not move at all. They do not move left, even though there is no obstruction, because that is NOT the minimum move necessary to line up.
The same relationship is demonstrated on pages 97 and 99 which shows BGs at impact and again, after conforming, in melee. The BG on the left moves the minimum necessary to line up, which puts one base in FE contact and the other in overlap.
Please get it out of your head that only full front edge contact is a valid conform. That is not what the rule says.