-- "... these events present a potential for conflicts of interest between counsel and client ...": Some of our other clients are really miffed that we've taken this case. They'll be around long after Fairey's gone... and their pockets are waaaay deeper than his.
-- withdrawal and substitution "... can be accomplished without material adverse effect on the interests of the client ...": This case is so bogus that a naked blind deaf-and-dumb affirmative-action One-L could argue it... and win.
-- "... additional grounds that for reasons of professional obligation present counsel could explain in camera...": Our client is a lying, duplicitous scumbag and we don't mind telling you privately that we'd just as soon be shed of him.
And last, but by no means least:
-- "...Fisher ... and Palfrey ...": Snotfrad cocks a gleeful snook at Haaahvd. Take this and choke on it, you arrogant bustards!
Actually, I think it’s simpler than that. The lawyers who want to drop the case have realized that Fairey is a perjurer and don’t want to get disbarred as accessories.