Yeah there's that too but if she went with it and Flio finds out the queen actually ordered that, things aren't going to be good for her, specially because she asked for his help many times before and even made a deal with him recently to keep the lands as is as we all know.Just doublechecked:
In ch 39 she made the order to take back the land.
Given how...terrified? she look while talking after, she's probably aware Filio might take this as a breach of their agreement, but maybe she share the commander's view of this area as 'human territory' unlike Filio who see it as the demons'.
As for Flio's, I don't think he 100% thinks that land belongs to the demons, maybe he's just using a counter argument to the plead humans make saying that land belonged to them before.
Anyways, well find it all out soon in the next chapters... I just hope the queen has a decent excuse for ordering the attack and breaching the agreement because I think she's a way more decent person than the previous king.