I do not see the first section as necessarily providing an override to the 310 section.
You could just as well argue that 250.118 allows you to use black insulated wire for the EGC since it just specifies insulated and does not specify a particular color.
250.118 says that solid is one option and 310.106 qualifies that by stating that solid can only be used in a raceway when smaller than #8.
If the EGC is run with the other conductors, but not in a raceway, then the prohibition against large solid wire does not apply at all.
This is almost as difficult as trying to decide when the Federal government has preempted state regulation in a particular area rather than just supplementing it.