Doublechecked a couple things.

* The Welsh personality is CATHOLIC_TRADE (and they are not Crusaders).
* In one provence alone, my trade income is 1120.
* In all of my provences, the loyalty of my people is 200%.
* My King's virtue is "Magnificent Builder" with pluses to general loyalty and happiness.

Yet:

* My generals for new troops produced are loyalty 0-2.

Does this seem to you like there is something wrong?