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Once the withdrawal of troops began, it couldn't be stopped. Especially after the Iberia Kingdom joined, the concerns of various countries were dispelled, and they began to withdraw forces from the Papal State for reinforcements.
The sudden appearance of a power vacuum always needs to be filled. Although the countries withdrew troops abruptly, they still abided by principles.
Not only did they notify each national government before the major army withdrawal, but they also transferred their currently controlled areas to nearby allies.
As for whether the allies have the capability to control such extensive territories, that's not within their considerations.
Sometimes the cake is so large that it causes distress.
In usual times it would be fine, but in the midst of the rampant Magic Cataclysm, acquiring a large amount of new territory is not a good thing.