The 41-year-old went on to comment on William's looks and said that Kate Middleton is "lucky" to have the British royal as her husband.
The Duke and Duchess of Sussex will not be joining the royals for Christmas at Sandringham.
However, royal journalist Liam Gilliver slammed William and Kate for remaining silent during Harry and Meghan's struggles with media.
It's particularly hard for the Queen to see William and Harry feuding as she took a "close interest in their upbringing" after they lost their mother.
The legacy awards, which are handed out every two years, was introduced by The Diana Award in 2017.
The family plays pick-up games of charades and football during the Christmas celebrations at Sandringham.
Apart from George, Charlotte, and Louis, Carole has two other grandchildren, Arthur, 4, and Grace, 8 months, the children of Pippa Middleton and James Matthews.
The second part avoided the topic, and gave screen time to Meghan's lawyer who had appeared in the first installment defending her from bullying allegations.
William and Kate will be travelling to the US next year for the second annual awards ceremony of Earthshot Prize.
The Duke of Cambridge was said to be a skeptic in his brother's whirlwind romance with a divorcee.
The Duke said that during his time as a pilot for air ambulance, he was particularly affected by any job concerning children.
The Duke of Cambridge also cited Africa's human population in his 2017 speech at the Tusk Conservation Awards.
The royal family is said to be furious that "unfounded claims from unnamed sources are presented as facts" in the documentary.
The Duke of Cambridge reportedly snubbed the network recently by banning it from showing a Christmas carol concert being hosted by his wife Kate Middleton.
The Princess of Wales was reportedly having an affair with her protection officer, the late Barry Mannakee.
A royal expert said Meghan's recent appearance on "The Ellen DeGeneres Show" was an attempt to redeem her reputation after her court blunder.
It comes after reports that Buckingham Palace plans to boycott BBC if the broadcaster does not offer them the right to respond.
The Duke told the journalists, "thanks very much for coming guys - not that you were invited."
Royal expert Richard Fitzwilliams predicted that part two of the documentary will "undoubtedly worsen" relations between William and Harry.
Omid Scobie claimed in the documentary that insiders from royal households fed negative stories about Harry and Meghan during their departure.
Queen Elizabeth II has joined forces with her heirs Prince Charles and Prince William to protest the programme.
The Duke and the Duchess of Cambridge donned their best outfits as they attended the Royal Variety Performance on Thursday.