@Franuky Yes it will conflict.

Does this conflict with Material Lighting Mod?

If they were without vmt files then it was compatible

@Goaty No

Is this compatible with the Gun Upscale mod?

@Der Vampir fixed

If it works, I will reduce the file size.

@Der Vampir Maybe someday I'll do that and translate them into a "Patch" shader

Either way, what I meant before was, all of what you're doing could just be loaded into the shared vmts rather than changing all of them by hand, in so retaining the base vmts, all the while still getting rid of envmap and applying your edits to phong; you can still get rid of rimlight or adjust it too. This would save on the file size considering looking at the normal maps and illum masks you provided I see no difference to the original, so to me they seem packed up for no reason, though please correct me if I'm wrong. Also the textures as stated below might be slightly altered but even then I am unsure really as the changes are extremely minor if so. All in all, I still like your phong edits, but it does take away a few things more than what it is trying to achieve it seems far as I can tell and can be done in a slightly more clean and lightweight manner.
((Sorry for the long comments, I'm terrible with concision lol))

I have no idea what you mean by they don't support it, they all have it by default including melee, only thing not working included in those is the guns bloodmap. Giving this a closer look it seems all you did was change phong values and remove rimlight and envmap. All your edits are the same across the board (phong/boost/fresnelranges) and you even omit some of the unique textures or adjustments on certain weapons like the 870's shine texture, etc. I also see some illum mask lines are missing from a few weapons, world models namely, even though they are included on their view model or vice versa variants, Although typing this now that might be if you intend on using illum without a texture line so you can use the base textures alpha channel but I don't believe that is the case.

Some of the vmt weapons do not support it

@Der Vampir Unfortunately, no, it doesn't work that way.

Finally, i was tired of the shiny weapon in dark areas

Glad to see someone messing with this sort of thing, but couldn't it be streamlined by entering the vmt edits on guns_shared where applicable? This would help with any other workshop models that happen to use those shared vmts as well. And it's probably worth throwing these changes over on melee_shared too since they are the same exact edits. Also did you alter the weapon textures? You got like everything packed up in there lol, I only did a small glance but from what I can tell some looked slightly different, either from contrast or brightness, I am unsure about the illum and normals as I didn't check those though. But either way great job and I'm glad to see someone taking the time for this, I got lazy with editing phong ages ago and just removed it for the most part from default models haha, so thank you for your time and effort on this.