Since this is a hierarchical clustering, we consider that clusters of a lower level contain clusters of a higher level, and that idea is enforced when building the convex hulls. However, I don’t see any justification for having clusters that intersect other clusters on the same hierarchical level, which in practice would mean that some points would have a double cluster “membership”. On the image bellow, we can see some intersecting clusters with the same hierarchical level (0).