Answer: Incurs Deadlock but conflict serializable
We can observe that in T1 shared lock is applied on Y, again T2 is trying to access Y before shrinking phase. Similarly T2 is share locking X, and T1 is trying to access X before the shrinking phase. So deadlock is happening here.
3 points need to be noted:-
1. Cascading rollback can occur in 2PL.
2. Deadlock may occur in 2PL.
3. Serializability is guaranteed in 2PL.
Serializability is mainly an issue of handling write operation. Because any inconsistency may only be created by write operation. Multiple reads on a database item can happen parallely.
2-Phase Locking protocol restricts this unwanted read/write by applying exclusive lock. Moreover, when there is an exclusive lock on an item it will only be released in shrinking phase. Due to this restriction there is no chance of getting any inconsistent state.