Citizenship can apply on expire passport?

Hello Everyone,
My step daughter had eu passport which is expire and can not be renew for some reasons (2nd parents Refuse signs form) she is 9 years old and born in uk and all 9 years spent in uk her eu national mother have Settled status in 2019.
We applied for passport directly but they said you need to apply for citizenship first as mother was not working Continues 5 years before daughter born.
Because of expire passport we couldn’t apply for settle status for her
My question is can we apply for citizenship with expire passport?
2nd question is can we apply citizenship without having her settle status under eu Settlement Scheme?

Really need advice on this please if someone can guide. Thanks

Because of expire passport we couldn’t apply for settle status for her

A UK born child does not need settled status to be able to register as British.

My question is can we apply for citizenship with expire passport?

Yes.

2nd question is can we apply citizenship without having her settle status under eu Settlement Scheme?

Yes

My memory tells me that one would need consent from both parents to apply for citizenship, no?
If 2nd parent is not cooperative, it might be an issue..