The answer to the question is more complex than picking one of the offered responses.
First of all, it depends who you ask. Some people like the contest aspect of conflict and are drawn to or stir up conflict. Others are put off or fearful and will go out of their way to avoid any situation that could provide grounds for conflict.
Secondly, what do you mean by “conflict”? At its simplest, conflict is a difference of opinion. Most people who say conflict is “bad” are referring to the highest levels of conflict – personal hostilities or global warfare. On our teams, we need a variety of opinions to select a course of action. That means we need conflict – different ideas about how to respond to a new constraint to our work.
Finally, it depends. Once we have finished our professional debate about strategy, we need to pull together to implement the decision. Personal opposition and minority opinions (conflict) only serve to dilute our efforts. (That would be “bad”.) Non-professional debate (personal comments or innuendos) distract everyone from the work that needs to be done. (That would be “bad”.) Behavior or communication that divides the team or destroys the team’s morale – that would be “bad” as well.
Keep in mind that no matter how you feel about any level of conflict or a particular situation, the each team member has his/her own take. As a team member, and particularly if you are the nominal leader, be aware of the rest of the team’s response to any situation of conflict.