I think they're allowed to reuse names in the same generation. Edward is one of Andrew's middle names, but that didn't stop the Queen from using it as a first name for his younger brother. And this baby will be Charlotte's cousin, not her sibling.
True - and William and George both have Louis as middle names and still William used it as first name for his youngest son. And Charlotte and her cousin both have Elizabeth as middle names. Charles Spencer's daughter is Charlotte Diana.
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