As the Letters Patent issued by King George V in 1917 states: "The children of any Sovereign of these Realms and the children of the sons of any such Sovereign and the eldest living son of the eldest son of the Prince of Wales shall have and at all times hold and enjoy the style title or attribute of Royal Highness with their titular dignity of Prince or Princess prefixed to their respective Christian names" . Beatrice and Eugenie are daughters of a Sovereign's Son. Andrew did not have to insist, his children automatically were Princesses as soon as they were born.
https://www.heraldica.org/topics/britain/prince_highness_docs.htm#1917_2
I quite agree with that.
But I recall a press story at some stage earlier than the marriage of Edward and Sophie (Wessex/Edinburgh) that Beatrice and Eugenie could cease to be Princesses and become Ladies. Perhaps there were suggestions for new Letters Patent to restrict the HRH and Prince or Princess titles to children of the Sovereign and to children of the eldest living son of the Sovereign.
[Hope I've got that right! But you probably get the drift.]
That was reported to have been objected to very strongly by the Duke of York. So instead we saw the agreement for the children of Edward and Sophie to have styles and titles as children of an Earl.
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