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This game was started with the previous patch, but after updating CK to the current version, it's still not possible to create previously destroyed titles. I was trying to recreate the duchy of Spoleto (in central Italy).
That was noted in the thread. It's only fixed for titles that were destroyed after the patch was applied. The old titles are still incorrectly flagged. The bug happened when the title was destroyed. Not when you try to recreate it.