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Austria conquered Parma, Modena and Romagna from France. Later France entered the instability zone, while Austria was in the normal zone. France lost it's conquered minors, but Austria lost Parma, Modena and Romagna. The status of Venetia and Dalmatia was not affected.

Playing v1.24.02 Beta, Hotfix #3. Austria is Human, France AI.

That's a new one. Have you got a save from before France going into instability? That would be helpful for tracking exactly what happened. But I understand Austria conquered French-controlled minors and apparently the control did not properly transfer to Austria. Do you recall if the map displayed an Austrian conquered icon or not? If you don't have a save, I'll try to figure out what might have happened.

No savegame. Started a new game for unrelated reasons and autosaves got overwritten.
Map displayed Austrian conquered icon, and Austria got income from them.

OK. Good clue that you had the conquered icon. I'll try to recreate the situation and figure it out. Thanks.

The problem was that the minors were not properly inheriting wars when re-conquered. I thought I explicitly fixed this for most all cases, but not for the case when control of a minor is converted from one MP to another. So I added some extra checks. Seems to work fine now, with the converted conquered minor showing at war with everybody Austria is at war with, and remains Austian controlled after France goes into Instability or Fiasco and loses its minor. Good catch. Thanks.

However, during my playtests, I had a situation where I as France at war with Prussia moved to attack a Prussian corps and the game failed to go to land combat. I need to run that to ground tomorrow and then get out another quick hotfix.