Some factions get stuck never wanting to make peace, regardless of benefit. You could offer them your entire empire and they probably would not take it. It's probably the same sort of problem that makes some factions fall asleep and never do anything, the AI is not properly evaluating changing conditions. Possibly hardcoded that way on purpose to prevent too many rapidly shifting alliances, but who even knows. If a faction doesn't accept peace the first few times they ask, they probably never will, not even for all their lands back on the eve of their demise.
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