Unless you are writing nuclear warhead management system, writing UUID collision handling is waste of time. Client can retry on top level if request failed.
Sort of the distinction between unspecified behaviour and undefined behaviour in C.
You need some UX like an error message in a red rectangle or something.
the solution might as well just be not to care about this case (no sarcasm).
Your application might not care about treating this error, but the DB will report it.