I had assumed that now that Edward had finally become a Royal Duke, at the same level as Andrew, his daughter's style would pair with Andrew's daughters, although there was that hic up at the time of Edward and Sophie's wedding preventing these (future) queen's grand-children on the male line to become princes/princesses.
If and only if James or Louise used their princely titles and styles would the designation ‘of Edinburgh’ be used.
Since they do not use the princely titles and styles at present, they are styled as if they were not royal even though we know that they are.
Edward’s peerages are a dukedom, two earldoms, and a viscountcy. His eldest son can bear a courtesy title but it can’t be of the highest degree his father has, so it has to be of the next degree Edward holds, that of earl. This is why James’ courtesy title has changed. If Edward had a marquessate as well, James would be styled as a marquess by courtesy (as long as it didn’t have the same designation as the dukedom, i.e. Marquess of Edinburgh). Edward isn’t a marquess though.
The daughters of dukes, marquesses, and earls are all styled the exact same way: Lady Firstname Surname. This is why Louise’s styling has not changed.
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