Daemon’s treason

In the last episode where Daemon is having supper with Ser Simon Strong, Simon refers to Daemon as “my prince” and then Daemon interjects and refers to himself as “your grace”. Now I don’t really know the specific rules about how to refer to the royal family but Simon says something about “since you’re king consort to Rhaenyra I had assumed…” and Daemon says no, don’t assume (makes and ass out u and me).

Is Daemon commuting treason here and implying himself to be THE king or is Simon accidentally referring to Daemon as merely a Prince instead of king consort? I’m not sure if I misunderstood.

To be clear, as king consort, is Daemon supposed to be referred to as “your grace” or just “my Prince”. And if he’s knowingly referring to himself as your grace would that not be considered treason against Rhaenyra?

Edit: people bring up great points that the queens of previous kings are also referred to as “your grace”, apparently I completely forgot that so yeah Daemons titles can definitely still be Your Grace (I’m sure he’s happy about that lol)