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1- After taking Baden, a protectorate of Prussia, I created it as a French protectorate. While it has the dotted lines of a protectorate, it still allows me to decide its development.

2- I've captured East Egypt which appears to be a protectorate. Is there some reason it doesn't become a part of a conquering nation, as other protectorate provinces do? Also, even though it's held by France it is putting feudal levies into production.

3- 'Lent' provinces are counted as conquered provinces in calculating Empire points. Not a real problem except that it gives a nation a shortcut which may not have been intended.

I think what you've encountered is what I've seen too. I later realized you'll get this to happen because some provinces are 'parts' of a minor country nation. You have to get the capitol of the nation and then create the protectorates out of the whole nation. In some cases, like Prussia controling the capitol province of a minor nation as a protectorate, you can get a member province but it reacts like a conquered province until you also get the capitol province.
I had one case of a Russian protectorate province I conquered that kept producing Russian units though I had conquered it. It had a Russian dotted green line outside my French blue line. I could do nothing until Russia surrendered and I demanded they liberate that province. Next turn it was neutral and I could decalre war on it.
Beware of conquered home provinces and protectorates of countries you are at war with because the bastards will produce a unit and if you leave, it appears and reclaims the province!
Nothing wipes out your economy faster than accepting protectorates so my motto is "kill them all!"

gd- I follow your logic. That's the theory I'll go with, til someone shows me a better one.