The ICAO is the International Civil Aviation Organization founded in 1947. The statement "for the purposes of this convention the territory of a State shall be deemed to be the land areas and territorial waters adjacent thereto under the sovereignty, suzerainty, protection, or mandate of such State" has applications to current world issues.
Though it is understandable that some may feel this is unanswerable as a "aviation question", it is relevant and sparks interest.
Rules are made by people for people. This wording, written over 70 years ago, may be subject to review. Key words are "adjacent" and "sovereignty, suzerainty, protection, OR
mandate". As with any Standard Operating Procedure, an improved version may supersede it.
If an area is in dispute, that does NOT mean rules for air space over it can not established and abided by, especially for civilian air craft. Cooperation of the parties involved is a possibility.