I think the general consensus here is that you should try to avoid even the appearance of impropriety, but that in areas that have a very limited number of officials, some supposed conflicts are unavoidable.
Last week, my son worked a freshman game at the HS he graduated from 3 years ago. After the game, I asked him if he felt any conflict (the home team won in a blowout). He said he didn't, and that the only difference working there was that he knew where the bathrooms were.
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Yom HaShoah
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