During the Queen's funeral last year, the King allegedly instructed Prince Harry in a "secret conversation" that he might refer to his children as Prince and Princess.
Yesterday, Harry and Meghan's 21-month-old daughter Lilibet officially received the royal title of "Princess," which is the first sign that the Sussexes will use the titles for their children.
After hearing rumors that the King could prevent the kids from becoming prince or princess, this action is considered a gesture of reconciliation.
According to royal sources, Charles never would have "punished" his grandchildren in that way.
Notwithstanding the Sussexes' repeated criticisms of the monarchy and members of the Royal Family, it is thought that the Duke and Duchess of Sussex and royal officials have communicated about the matter.
The children of Harry and Meghan were given the titles of prince and princess upon the King's accession to the throne, but they have been listed on the Buckingham Palace website as just "master" and "miss" for the previous six months.
A spokeswoman for the couple said yesterday that Lili was referred to as "Princess Lilibet Diana" and that she was baptized last on March 3 in a private ceremony at their home in Montecito, California.
Also, it was learned that the pair will only use the title in formal contexts and not normally in conversation. So, she'll probably continue to go by the name "Lilibet" in most contexts.
According to reports, Harry and Meghan are anxious to give their children their birthrights without denying them, but they will give them the choice to decide for themselves when they are older whether they want to maintain or abandon using the titles.
She is currently referred to as "Miss Lilibet Mountbatten-Windsor" on the official website, according to Buckingham Palace.
The Palace announced that Lilibet will now be a princess and that its website "would be modified in due course" to reflect the changes.