I'm looking for a word/term that describes someone who creates conflicts that don't exist
Solution 1:
A person who experiences unreal conflicts in their mind is "paranoid" or "delusional"
- paranoid (adj) - having or showing an unreasonable feeling that people are trying to harm you, do not like you, etc. MW
a paranoid personality
paranoid delusions
- delusional (adj) - suffering from a false belief or opinion. TFD
- labored under the delusion that success was at hand.
- having delusions of persecution
EDIT - If the person is perfectly aware that the conflict isn't real, a "fantasizer" may fit.
- fantasizer (noun) - one who experiences dreams or daydreams.
One who fantasizes about nonexistent conflicts deserves the title "masochistic fantasizer"
Solution 2:
How about
Eristic: from the ancient Greek word Eris meaning wrangle or strife, often refers to a type of argument where the participants fight and quarrel without any reasonable goal.
The aim usually is to win the argument and/or to engage in a conflict for the sole purpose of wasting time through arguments, not to potentially discover a true or probable answer to any specific question or topic. Eristic is arguing for the sake of conflict as opposed to the seeking of conflict resolution.