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Another way I like to think of it is it’s your parent’s cousin’s kid. So you can see why from their perspective it would feel more closely related, it would be like you having a kid and your cousin having a kid and then you seeing them together.
Yeah, genetically don’t make a habit of it, but you’re probably fine (unless your grandparents are identical twins or has hapsburgs or something), but also I’d be super uncomfortable if it was my kid