Area of potential conflict sees sexy garments making a comeback (7)
I believe the answer is:
hotspot
'area of potential conflict' is the definition.
(hotspot can mean an area of danger or conflict)
'sexy garments making a comeback' is the wordplay.
'sexy' becomes 'hot' (similar in meaning).
'garments' becomes 'tops' (top is a kind of garment).
'making a comeback' says the letters should be written backwards.
'tops' in reverse letter order is 'spot'.
'hot'+'spot'='HOTSPOT'
'sees' acts as a link.
(Other definitions for hotspot that I've seen before include "Nightclub" , "busy area" .)