Non-conservative electric fields due to changing magnetic flux?
First, consider the positive and negative charges in your moving wire. Since they are moving in a (obviously non-conservative) magnetic field, they experience Lorentz's force $q \ \mathbf{v} \times \mathbf{B}$ which is, in your picture, upwards for positive (and downwards for negative) charges. So they will be accelerated in exactly the same way (for whatever movement your wire gets) as if they were experiencing the electric field that you could calculate using the flux integral variation.
On the other hand, by changing to a moving reference frame, you transform any magnetic field into an electric field - and vice versa (Lorentz transformation). So, in a frame moving with the wire you see the magnetic field as a non-conservative electric field, and this E field accelerates your charges. That's what creates the current in your circuit.
Of course, after a short transient phase where your charges accelerate, you get (because of collisions) a constant current - that's basic Ohm's law here.
And the important point is, whatever your point of view, you will always find the exact same motion for the charges.
Now, neither the magnetic field nor the electric field that appears in the moving frame are conservative (the latter does not appear from Coulomb's law, which in this case states $\nabla \cdot E=0$, but from induction)