I just tested it and I do get the error.
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Another user has modified the record for this Item after you retrieved it from the database. Enter your changes again in the updated window, or start the interrupted activity again. Identification fields and values: No.='1000'
From webservice.
My test codeunit looked like this.
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Item.GET('1000');
SLEEP(10000);
Item.VALIDATE(Description,'Bicycle WS');
Item.MODIFY;
So while the WS was waiting I modified the description on the item with another client.
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