So, let's consider that Greek word, "charis" means "(God's) divine influence in the heart and its (subsequent) reflection in the life", as defined in Strong's Greek dictionary.
Then let's consider that in the early translations into English (Geneva and King James Bibles) the language is absent of words that equate with the Greek word, "charis" and its technical meaning, thus the translators used words at their disposal, those being grace and favor which are plesionyms rather than synonyms, the result of which was that at some point the meaning of "how God operates in our 'core beings'" began to be substituted with the meaning of “our resultant standing with God”.
It seems that the Bible translators would have done a greater service by simply injecting the meaning of charis rather than to use words that were (and are) mismatched to the word "charis". For after all, as Jesus stated, no one comes to Him (for salvation) except the Father draws (influences/motivates) him to do so! (See: John 6:44)
Now, "charis" IS the base for the Greek word "charizomai" which does mean "to grant as a favor", but "charis" itself means that God works in our hearts to produce an effect which HE desires ... His first desire being our redemption/salvation with the ongoing desired effects of His influence towards our lives increasingly reflecting the Lord Jesus Christ (Romans 8:29), which is why God tells us to "grow in grace and in the knowledge of our Lord Jesus Christ ..." (The concluding instructive of 2 Peter 3).
Interestingly, there can also be a negative reflection of God’s influence in our hearts which is human rejection and refusal to comply! Both of these are in fact reflections in life from God’s influencing efforts to draw us to Christ … so when you see a person adamantly or being confrontational in their refusing or rejecting God’s offer of salvation in Christ Jesus the Lord - you can be pretty certain that such person is reacting to God’s current operation of influencing their hearts to receive Christ Jesus!
Finally, looking at just the specific, not extrapolated, meaning of “charis”, it is interesting that it does apparently include or imply “favor”, much less undeserved or unmerited favor!
To further understand the confusion, the etymology of “grace” stems back to the French language in which the Old French grace means, "pardon, divine grace, mercy; favor, thanks; elegance, virtue" (12c., Modern French grâce), and from the Latin, “gratia” meaning "favor, esteem, regard; pleasing quality, good will, gratitude" (source of Italian grazia, Spanish gracia; in Church use translating Greek kharisma), from gratus "pleasing, agreeable," from PIE *gwreto-, suffixed form of root *gwere- (2) "to favor." {From etymonline.com}
So, as stipulated earlier, what has become the traditional religious meaning in churches is the result of the absence of a word in English that equates the Greek word, “charis”.