I have no idea what's going on anymore. So, Lust is the Queen of the country. It doesn't really matter who it is. She knew of these experiments because they had been going on for a good long while in a military facility in the military capital. So, why does she act as if she couldn't put a stop to this on her own? It's nothing but the end phase of an experiment that was performed with her blessing, like I said earlier. She was even cooperating with a demon to do it.
Maybe the series will explain it later. Or maybe this story is just a mess.