Timeline of applying for Brit citizenship given my settled status

Hello,

I live in the UK and have been doing so since 2012, working full-time. My immigration history is like this:
2012-2014: Tier 5 Youth Mob
2014-2016: Tier 2 visa
2016: Got an EU passport, continue working in the UK under EEA rules
Sep 2019: EU settlement scheme: I applied for pre-settled status, but got a letter saying I had settled status.

It's been over a year since I got settled status but I wonder if the government made a mistake in giving this status, and if so, should I put off applying for citizenship?
Was the Home Office correct to give me settled status after only 3 years of exercising EU treaty rights in the UK? Ie did they make a mistake?
Is it too early, or the right time now, to apply for British citizenship?
thanks so much

It seems that for the calculation of the 5 year residence period for settlement the current Appendix EU doesn't allow time under EEA rules to be combined with time under non-EEA rules.

I stand to be corrected but If this is confirmed then the September 2019 decision granting settled status was indeed wrong although by now, or soon, the OP will have completed 5 years under EEA rules.

Or were the rules in September 2019 perhaps different from what they are now?

Opinions on the issue would be welcome

Settled Status is shorthand for a grant of ILR under Appendix EU of the UK Immigration Rules.

To the best of my knowledge, if the Home Office has incorrectly granted ILR by its own mistake, rather than by the applicants deception, that ILR remains valid. But keep in mind that I am not a lawyer and somebody with a better understanding of the law may have a different interpretation.

There is a slightly more complicating factor here in whether, under the laws of the country of EEA citizenship, the applicant's EEA citizenship acquisition was dated from the date of acquisition (as it would be under UK law) or from birth. If the latter, it is possible that the Settled Status was issued correctly because even though the OP acquired EEA citizenship in 2016, it was backdated to their birth and hence all the period working in the UK (even under leave granted under the Immigration Act 1971) would have counted for acquisition of PR under the EEA regulations.