I’m going to repeat something I’ve said before, and then be done with this. Titles and labels and the question of whether Dynasty readers want to have sex with little children (I am confident we very firmly do not) aside, there’s a reason Itou Hachi’s work produces this kind of chaotic and often anguished array of responses.
The drawing style (and this includes the staging and pacing) of many of her works, including all of the furry ones, is insanely appealing at an almost unconscious level—I myself am not in general particularly attracted to heavily cute manga styles, but I find Itou Hachi’s work, including this series, to be almost irresistible. And as a yuri reader, my default reading impulse is to wish for the OTP of a series to be together as much and as intimately as they want to be.
The Master and Mel relationship is overtly depicted as being entirely positive and rewarding for both parties, and the overall story world is shown as consisting of a mostly benign society with an occasional threatening element surrounding a nearly hermetically sealed domestic bubble of world-class cute. (Cue the butterflies.)
The big ‘but’ is that the Master & Mel relationship has always been depicted as to some extent sexualized, starting with Mel’s ambiguous S/M collar to a very long list of behaviors that would be adorably sexy (even sometimes rather kinky) were it not for the age status of the protagonists. The author then allows us to blur some distinctions a bit by making Mel not a “real” human child but a beastkin without ever defining exactly what that means.
As a result, the series is very literally a “guilty pleasure,” with the pleasures being, as I mentioned, almost viscerally irresistible (I suspect many people would click on something labeled ‘Master & Mel’ no matter how heinous the warning tags might be), but as soon as you think just a bit below the surface about what’s going on in the Master-Mel relationship, you realize that you've been reading about what is by any measure “inappropriate” (to say the least) behavior and thinking it’s the most adorable thing in the world. So hence the guilt.
The hentai won’t allow for the usual rationalizations and deflections about the nature of the relationship, which explains the desperation about denying that this is “canon” so as to preserve the idea that the “real” story that we enjoy so much isn’t about that at all.
The series has always been simultaneously extraordinarily adorable and ethically unsettling (that’s a constant theme in the series discussion boards), and I suspect that many people who crash these threads crying, “You do realize that pedophilia is WRONG, don’t you?!?” (as if that could possibly be news to anybody) are really yelling at themselves rather than at anyone else.