Complex sentence: Meanwhile, Princess Laksami saw that her inability to produce an heir was, in fact, her not being to do her full duty as Royal Consort, she thus "retired" and moved to a simpler life outside the Royal Court.
Split into simpler sentences: Meanwhile, Princess Laksami saw that her inability to produce an heir herself was, effectively, a failure to fulfil her duty as Royal Consort. As such, she chose to "retire" and moved to a simpler life outside of the Royal Court.