And yes, you're quite right that HRH Franz, the Duke of Bavaria, and his near heirs don't care in the least about British royal claim. But this is nothing new: not since the attempted rebellion of Bonnie Prince Charlie has there been a serious challenge to the succession established by the 1701 Act of Settlement (which stated that the crown was to pass to "The Electress Sophia of Hanover and the heirs of her body, being Protestant").
By the time of the death in 1807 of Prince-Cardinal Henry Benedict, the last of the Stuarts, the world at large had become resigned to accepting the Sophia line as the rightful occupants of the British throne. Although the heir-generalship of the House of Stuart continued through the line of Princess Henrietta Anne of England and Scotland (the youngest daughter of King Charles I), none of the heirs of this line has contested the 1701 Act or attempted to press any claim on the British throne.
In fact, the future Crown Prince Rupprecht of Bavaria even represented the House of Wittelsbach during the 1897 diamond jubilee celebration of Queen Victoria. Of course, by then the stock of his family had risen sharply: the famous "Mad" King Ludwig II (who was actually his godfather) was dead, and the equally deranged King Otto reigned in name only, under the regency of Rupprecht's grandfather, Prince Luitpold, who by then was heir-presumptive to the Bavarian throne (first in the line of succession).
Since Rupprecht was the eldest son of his eldest son, his chances of eventually succeeding as king were good -- and would have happened, but for World War I and the abolition of the German monarchy, when the house of Wittelsbach got deposed.
Nobody could have foreseen such events at the said jubilee celebration: the only thing people could see was that Rupprecht was a real heir to a real royal claim -- third in line to the throne of a kingdom. As such, there was no need for Britons or Queen Victoria to regard him as any threat: by all accounts, he was received with cordiality. It was only Jacobites (a small faction) who dubbed his mother as "Queen Mary IV and III" and himself as the "Prince of Wales."
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