Theory time:
I'm thinking that someone, maybe our villainess, approached the prince to plant some sort of attraction charm, but it didn't work (maybe his revulsion caused him to resist/not take) so they erased his memories (which is why he forgot something so traumatic) and cursed him instead with intent of approaching him later. Being with Lynette is not only eroding the repulsion spell, but also the spell that hid his memories, which is why we had this sudden recall now. Lynette still has her nullification, which is why the curse doesn't affect her, and the prince is not the origin, which is why his perception of her doesn't matter, and the "not a woman" comment is the typical shoujo, drama, red herring thing.
Edit: Lady Friede (unlike ALL the other women in the series) has shiny, screentoned lips like our r*pist.