Child born abroad when eligible for ILR?

Hello, I currently have a Tier 2 visa and my wife the Tier 2 dependant.
We have a child on the way and we are considering where the baby should be born.

If the child is born abroad. We will be applying for a Tier 2 dependant visa before returning back to the UK.

From what I have read, a child will be eligible for ILR once both parents have settled?

continuousr esidency rules would not apply? The child would be too young to be able to satisfy.

If child is born abroad, child can apply for ILR with the other parent (who applies for ILR later on). No residency applies.

If born in UK, child can be registered as British Citizen if one parent gets ILR.

thank you!
this is what I thought it was but home office documentation is confusing.