The following order of precedence is used:
- Repository nodes with type sling:OsgiConfig under /apps/*/config....
- Repository nodes with type sling:OsgiConfig under /libs/*/config....
- Any .config files from <cq-installation-dir>/crx-quickstart/launchpad/config/.... on the local file system.
So a generic configuration in /libs can be masked by a project specific configuration in /apps.
However, when I created a node with name org.apache.sling.commons.log.LogManager and type sling:OsgiConfig and added the property
org.apache.sling.commons.log.level=info
and in launchpad\config\org\apache\sling\commons\log\LogManager.config I have:
org.apache.sling.commons.log.level="error"
I see that level for LogManager is "Error" instance was rebooted.
It gets more important for me because it was a question about configuration priority on AEM Developer Certification.