Unlanded character on the council. Trying to hand out a duchy level title.
Basically you have an unlanded character without titles, they will not like you handing out titles to anyone unless you give them something. This is one of the downsides of granting a council position to unlanded characters. Yes they are typically more loyal - he is even a loyalist - but they have desires that will still over ride this. Getting a title being his biggest concern.