Sometimes the AI just has somethin' stuck up its butt and wants to take it out on you. 
You're probably missing a star province in either Africa or Indo-China. As far as the puppet state, I'm not really sure... maybe you're not allowed to do it to France because of the Vichy event?
Either way, occupation of France (what you're currently doing) is nearly as good anyways, so don't worry about it too much.
You're probably missing a star province in either Africa or Indo-China. As far as the puppet state, I'm not really sure... maybe you're not allowed to do it to France because of the Vichy event?
Either way, occupation of France (what you're currently doing) is nearly as good anyways, so don't worry about it too much.