A villain dropping old dispute (5)

I believe the answer is:

argue

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'dispute' is the definition.
(to argue something is to dispute or contest it)

I don't understand the rest of the clue.

(Other definitions for argue that I've seen before include "Debate, contest verbally" , "Dispute heatedly" , "Quarrel, bicker" , "Bandy words" , "Dispute, bicker" .)

I've seen this clue in The Independent.

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