I actually posted a whole thing about this somewhere. In any case the Holy Grail myth (the latest version) probably began with a late appearing misguided cult within the aristocracy of the Hapsburgs probably based on the the earier Merovingian legend.
No one remembers this origin so lots of people get fooled.
I think all of the Holy Grail and Lance of Destiny stuff as well as the Jesus and Mary Magdalene and family myths came out of South France and spread to Switzerland. I don't believe there was acceptance of any of this in th Austro-Hungarian Empire. To the best of my knowledge the Hapsburgs were always loyal to the Pope and the Catholic Church.
Then again,there was an Austrian King named Ludwig who was quite crazy. It is rumored that he was a homosexual and involved with things Masonic and he ended up suiciding or being murdered at a relatively young age. He had many very exquisite palaces and castles as well as a hunting lodge that serve the Aurstrian tourist industry well.