The suggestion that to “conceit” something was to “conceive” or “imagine” it led , understandably, to the word’s being associated with fantasizing—to the notion, in other words, that whatever was “conceited” was possibly delusional . No, the predicate of the italicised subject is the entire underlined sequence. Within that predicate there are other clauses with their own subjects and predicates.
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Btw, it's a poorly constructed sentence because it contains a run-on claus