Not looking too deep into this recent supposed scandal; when I first heard about it I thought it was true, but now I don't think it's legitimate and the palace isn't bothering to acknowledge it because it's ridiculous. I could be wrong, but I don't see why Harry would be so candid with a minor and a stranger.
The Palace may not be denying it because they are now leaving Harry to do his own work on these sorts of issues. And he hasn't denied it, has he?