Where every country in diplomatic range sends an ambassador to you, and you to them. And the quality of that ambassador, and closeness to you in relations, etc., affects their disposition towards you and your country and subjects.
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Read his post as saying realm not countries then. If I can appoint my sister as a court musician or food taster, why not let the middle man in diplomacy be visible.You're using a very modern (and early modern) view of how diplomacy operates. In CK3, there are never countries in diplomatic range, because there are no countries. While there were absolutely ambassadors in medieval Europe, Asia, and Africa, it's more helpful to think about them as diplomatic missions and agents supporting inter-ruler relationships than the modern host of ambassadorial positions.