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Playing the August, 1805 Campaign game as the French, Hannover is completely occupied, with Hannovarian troops in garrison, yet, the French are at war with Hannover. Also, a couple of the political options refer to the "Annexation of Hannover" as a prerequisite. What is the reason to be at war with Hannover (I'm assuming because of the British monarch), when it is totally occupied, and when does the Annexation of Hannover option occur?

In August 1805, Hannover (a personal possession of Georges III) is occupied by French troops. There are no Hannoverian troops in garrison there, only French occupiers (different from the January setup). Normally the 'Annexation of Hannover' option should be available to the French player (check F3-F4 screens). Just validate it and it will be implemented on the following turn.

For the August, 1805 Campaign, playing as French, there is no Annexation of Hannover political option.