The most common and most likely answer to this crossword clue is the 5 letter word FUDGE
I've seen this crossword clue in Financial Times
F
U
D
G
E
More clues leading to the result FUDGE
- Humbug, / some confectionery
- Manipulate confectionery
- Soft sweet? An unsatisfactory compromise
- Sweet but unsatisfactory compromise
- Sweet doctor
- Leader of gang in ridiculous feud makes unsatisfactory compromise
- Sweet duck
- Damn fine magistrate that’s released Juliet
- Gangleader in feud compounded ambiguity
- Sweet compromise
Buddy explains!

The straight part
We know that "ambiguity" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case ambiguity = fudge.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FUDGE mean?
FUDGE noun- A type of very sweet candy or confection, usually made from sugar, butter, and milk or cream. Often used in the US synonymously with chocolate fudge.
- Light or frothy nonsense.
- A deliberately misleading or vague answer.
- A made-up story.
- A less than perfect decision or solution; an attempt to fix an incorrect solution after the fact.
- To try to avoid giving a direct answer.
- To alter something from its true state, as to hide a flaw or uncertainty. Always deliberate, but not necessarily dishonest or immoral.
- To botch or bungle something.
- To cheat, especially in the game of marbles.
- (minced oath) Used in place of fuck.
- Nonsense; tommyrot.