For GMAT question, the boundaries for the variables have to be set clearly, not by assumptions of the test taker, but by clear instructions from the test maker. When the condition states x^Y and nothing else, there is no restriction on the value of either x or y .
The point is that the conditions LZ posted are like Swiss cheese - it's full of holes. There is no restriction on what type of numbers y can be in condition 1 or what type of numbers x can be in condition 2. Zero is an even number. So y could be 0 in condition 1 and x could be 0 in condition 2. In addition, in condition 1 when x is an odd number such as 1, y could be any number and the answer is always "condition 1 is sufficient"!