Do tags have a priority? Are some tags more important than other tags? If an NPC recognizes a conflicting tag, does it prioritize one or the other, or does it just jump up on the chair and not know what to do?

I think that depends on the logic more than anything. I mean, all tags are created equal. It's just how you use them. Whereas mannequin tags, they do have a priority. So say it was something more important, like I'm being shot. That's probably going to be a higher priority animation tag than just a standard idle, for example.

Also, you have hierarchy in tags, as far as I know. For instance, you can have an entity with an outfit tag. You can have an entity with a very specific outfit as well. So you can work with the hierarchy of tags as well in that regard, if you want to make any specific behavior based on the hierarchy structure of the tags.

Yeah, it's so fundamental, you can use them in pretty much any way you like. That's one of the best things about them.