As I understand it, Charles can take any of his given names as his regnal name. So, he can either be Charles III, Philip I/II, Arthur I, or George VII (I don't know if he'd be Philip I or II because the original King Philip was actually Philip II of Spain who took the title of King of England when he married Queen Mary but his claim died with her, and they had no children).
Honestly, if you had the option of becoming King Arthur, would you not take it? I know I would.
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