No, it's still not contradictory. You just weren't reading it correctly.

The asterisk (*) in front of "Eligible Rate stays are" denotes a footnote, which only applies to where the original astreisk is in the text (footnote reference). But the "To Qualify" paragraph you quoted contains no asterisk, and contains no reference to Eligible Rates, so Eligible Rates do not aply to the "To Qualfy" paragraph.

SImple. No contradiction. You just took two unconnected parts of the HH T&Cs and put them together, when they don't belong together.

This is not left over from something else, this is correct, but just quoted by you out of context. The footnote about Eligible Rates is for paragraphs that deal with earning points and miles, not for paragraphs that deal with earning stay or night credit toward status.