We study the allocation of indivisible goods under conflicting constraints, represented by a graph. In this framework, vertices correspond to goods and edges correspond to conflicts between a pair of goods. Each agent is allocated an independent set in the graph. In a recent work of Kumar et al. (AAMAS, 2024), it was shown that a maximal EF1 allocation exists for interval graphs and two agents with monotone valuations. We significantly extend this result by establishing that a maximal EF1 allocation exists for any graph when the two agents have monotone valuations. To compute such an allocation, we present a polynomial-time algorithm for additive valuations, as well as a pseudo-polynomial time algorithm for monotone valuations. Moreover, we complement our findings by providing a counterexample demonstrating a maximal EF1 allocation may not exist for three agents with monotone valuations; further, we establish NP-hardness of determining the existence of such allocations for every fixed number n >= 3 of agents. All of our results for goods also apply to the allocation of chores.