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The good news though by what you hear from them, is that the duke of this region hasn't enforced the palace yet, nor does he seem able to reinforce it. For propriety sake and to claim they're just following orders, the occupiers attribute their actions to proclamation issued by the duke, of not giving you quarter. However the duke himself and his forces are currently tied up at the moment. Occupied at the border with a dispute by your own loyalist forces, so it seems your supporting duke kept to his word and came through in the end. While it has left your force significantly weakened, it also means this situation with the palace is yours to resolve alone without worry of enemy interference.
And naturally if you should manage to retake your palace then symbolically the locals should fall in line and accept your establishment. The question is then, just how are you going to retake your palace?
>By force! It will be quite a challenge, you may even suffer defeat! But a militant victory here will make the boldest claim for legitimacy, and though it may damage the palace... it will weaken your mercenaries to where they can be more easily managed.
>By intimidation! Venture to town and rouse up a rabble! An angry mob of peasantry and even a local lord or two along the way, surrounding the palace is sure to change some minds. Although this may also result in damage to the estate, and you'll have to appease the mob after.
>By charisma! You are Queen Isabella, and this is your home. With a bold speech you should be able to sway these lowborn to your cause, or at least convince them to stand down. Though, you yourself [Players] will have to compose what you want to say.
>By compromise! Surely some... deal can be reached with the defenders. Wealth, titles, promises... yourself even? There are things you have that you can offer them, to smooth this transition over without trouble or conflict. And once you've taken control, then all that can be swept under the table.
>By subterfuge! See if you can't find some way to sneak into the estate by night, seize control of the palace itself and let the defenders realize they've been had. Although, you will have to participate in this yourself so could be personally risky.
>Something else?