If they apply for settled status, is the other application considered automatically withdrawn?
This is particularly important for applicants who have applied to extend their leave or applied for ILR and their prior time limited leave has expired and are relying on Immigration Act 1971, Section 3C for leave until their application is decided.
If they apply for settled status, to the best of my understanding that application does not confer leave under 3C while being considered. Thus if it effectively renders the previous application cancelled/withdrawn, then the applicant would be rendered illegal in the UK with immediate effect until the EU settled status application is decided...

Please move this post to EEA-route Applications. Apologies for posting in wrong section
Would the grant of settled/pre-settled status render the residence status of the applicant lawful while it was considered as it would have declarative purpose similar to prior EEA residence documentation that certified bestowed rights? (for the purpose of good character / BC naturalisation application etc.)