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On a war of subjugation, I rolled over most of another empire and when I went for a Status Quo peace, they kept everything instead of the conquered territory spawning a new empire as my vassal ( though it did say that it had)
Had a similar issue. Waged war spanning multiple years had a good chance to win but the FEs were waking up so had to settle for status quo in a liberation war. the new empire was immediately consumed by the old like the whole war never happened. Occurred on the beta patch.