In the Middle Ages? No, certainly not. England had Germanic and French (Norman and Angevin) rulers, yes; but the former were the native inhabitants of England and of course stopped ruling themselves after 1066; while the latter held the throne for the entire game timeframe. There certainly weren't any Dutch rulers... Are you thinking of William III?
Wales never had German rulers--unless you want to count Anglicized Normans. It was conquered by force.
And why do you assume it would work the same way in Wales? Or, indeed, any Western European realm?
Because it could happen and it did. The kingdom of Sicily was ruled by Normans, Germans, French and Aragonese, both Castille-Leon and Portugal had their own house of Burgundy (the former was from the free county and the latter from the duchy). Poland had native, Czech, German, French and Lithuanian dynasties.
And towards the end of the timeframe of the game, various parts of the Low Countries were united by the French house of Valois Burgundy.
Scotland is an example were originally foreign dynasties went 'native' (Bruce (Norman) and Stuart (Breton)).
The main point is that it could happen, although IMO it should not lead to different province names for each culture. OTOH I do like the option, to change certain province names depending on which scenario. (The Dyfed, Pembroke example).
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