I couldn't work out if the ridiculously OTT curtsey was almost a little joke from the woman - I think they already know each other and are friends and clearly they were both desperate for a big hug. Like an in joke. But in appropriate in the spot and just looked awkward.
I think Meghan has no issues with these kind of events. She said herself that she doesn't mind the spotlight and the scrutiny. It's the lies she has an issue with. So I think she's perfectly happy to turn up and be photographed and even to accept a certain amount of attention on her personal life. She just doesn't want the press to write in today's papers that she had told everyone they had to curtsey and then they were all confused when she told them not to in public (for example, this is not a real thing).
Kate's brown dress is fine but so incredibly BORING. If you're going for the casual smart day dress, at least make it an interesting print or colour.