I don't see a problem with the settlements you added, what I do see is this:
Code:
characterMaximillian Godwinson, named character, male, leader, age 33, x 66, y 123
traits Factionleader 1 , SaxonHero , GoodCommander 2 , NaturalMilitarySkill 1 , LoyaltyStarter 1 , GoodAdministrator 2 , BattleChivalry 2, ManagementStarter 1, NightBattleCapable 1
army
unit Saxon Bodyguard exp 1 armour 1 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Dismounted Crusader Knights exp 1 armour 0 weapon_lvl 0
unit Crusader Knights exp 1 armour 0 weapon_lvl 0
characterAthalwolf, named character, male, heir, age 16, x 61, y 112
traits Factionheir 1 , SaxonHero , GoodCommander 2 , NaturalMilitarySkill 1 , LoyaltyStarter 1 , GoodAdministrator 2 , BattleChivalry 2, ManagementStarter 1, NightBattleCapable 1
army
unit Saxon Bodyguard exp 1 armour 1 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Saxon Archers exp 1 armour 0 weapon_lvl 0
unit Dismounted Crusader Knights exp 1 armour 0 weapon_lvl 0
unit Crusader Knights exp 1 armour 0 weapon_lvl 0
Your spacing for the characters you added isn't right, you have the names right after the character, rather than tabbed off of it. Fix the syntax in that area, it's probably registering no family members and thus saying your faction is dead.
Cheers,
Augustus