Was 10 years Lawful Period Fullfilled?

My close friend has now completed lawful 10 years in the UK .There is a confusion if someone can advice please.
In 2018,his application as PBS Dependent was refused with no appeal right.He applied for LTR (within 14 days)on the basis of his UK born child who was 7 years old at that time.His application LTR was granted for 30 months.

Will he be considered as an overstayed when his application was refused in 2018 ? Although he made an application within 14 days .

Please advice

The period of overstaying will be disregarded under paragraph 39E

thanks