What is the difference between condition and hypothesis?

The noun condition can mean different things. Among other things it could mean:

1. The present observable state of a thing, usually a physical thing, as in "What condition is your 1957 Chevy in?" or "Your garden is in poor condition."
2. A limiting or required stipulation that must be met before some other thing is allowed, as in "What are the conditions of your release from jail?" and "You can go to the game on the week end on the condition that your book report is completed by Friday evening."

The verb condition usually is synonymous with Words like refurbish and restore, or to improve an object so that it meets or comes closer to meeting original specifications.

A hypothesis (an hypothesis in some circles) is a speculation, basically a guess, about how some system works.