UK Ancestry visa

Hello

I am seeking guidance if possible on my best (if any) course of action
I admit that i am very confused by the options for obtaining a Visa ( I am not too thick in the rest of life)
I have previously had a granted indefinite leave to remain (settlement) but left the UK for more than two years
I returned to the UK in 2019 and assumed (stupidly) that the granted indefinite leave to remain (settlement) was still in place.
I have been working in the UK since then as my employers have received a positive verification notice every time they applied
I have applied since being back in the UK for Right of Abode and some other visas that has taken nearly the entre five years
I was advised to apply for the UK ancestry visa (I am a New Zealander) SET(0) but this was the wrong application route
I am technically an overstayer according to an Immigration lawyer
My questions are
Do i leave the UK and return to New Zealand to start the Ancestry application from scratch (paying for the very quick decision)?
Will they bar me from entry to the UK based on the fact i have overstayed (5 years)?
Any help will be gratefully accepted

Thanks

Ian

Have you ever been granted right of abode? Do you have right of abode in the UK?
Right of abode never expire.

If you get positive verification from the ECS HO records might still show you are settled.