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For me it works when I first start a playthrough, but then whenever I load up a savegame, all the ahistorical empires are back. Is it just me or am I missing something?
As stated by Frank, the event broke a few patches back, a workaround is to open the console after each load and type in the command "event meneth.512" (without quotes).
I ended out adding an event to the NoAhistoricalEmpires file which fires for the pope every month or so because it was easier than remembering to manually do it every time. Working well enough so far, apart from Bulgaria.