Princes Konstantin (b. 1986) and Hubertus (b. 1989) of Bavaria are princes and Royal Highnesses despite the nearest king in their male-line ancestry being their great-great-great-great-grandfather, Ludwig I.
That's because the marriages of their fathers were de-morganatized, just like the marriage of their great-grandfather (Prince Adalbert and Countess Auguste von Seefried).
Otherwise, if the original house laws (which required equality of births, for unions to be dynastic), then the dynastic line of Adalbert (born 1886) would have died with him.
It would be no different from the situation with a number of Scandinavian princes who married commoners, and therefore forfeited their royal titles and succession rights.
If it came to that, the male-line descent of Czar Nicholas I of Russia is still alive and kicking -- just not dynastic. Legal experts have acknowledged the Grand Duchess Maria Vladimirovna as the last dynastic male-line descendant of the house, and hence the rightful head of the Romanov imperial dynasty.
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