WI Henry VIII died in October, 1513

I think I must have misunderstood you. I thought when you were talking about fear of civil war, you meant that it was unlikely because people feared how awful it would be. Should I have read it as civil war could have happened because there i evidence that people fared that it could happen?

I think people were very scared of a return to civil war, which would (much like OTL) encourage them to seek the least complicated options - in this case, namely accept Margaret as their legitimate monarch and then coerce her to wed an agreeable King/Lord Protector of their (whatever your faction) choosing. It could have happened, without a doubt, but I think in this scenario it would encourage unity to avoid it happening.
 
Why would she have Scotland behind her? Given her Englishness and the necessity of leaving Scotland for England if she wants to have any chance of holding the English throne, I doubt very much that she'd hold the Scottish regency for long.

James IV's will expressly said that Margaret was to be regent until she remarried; if she did NOT marry until James was of age (1528), then she'd be fine -- she has her heir in her son anyway!
 
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