UK born child - parents with Settled status

Hi,

My son was born recently in UK, both me and my wife have Indefinite leave to remain - settled. I'd like to know if I can apply for the British passport directly or should I have to register my son as British citizen first before applying for passport.

It's a bit confusing as it states in the passport application form as - Did either parent have settled status from the EU Settlement Scheme when you were born?

We have settled status but our nationality is Indian, so not sure if we can select Yes for the above question.

If the child was born after you got ilr, the child is automatically british and can apply for a passport directly.

What other questions are asked? We don't all have sight of the online forms!

There is no other question asked if I select NO for this question - "Did either parent have settled status from the EU Settlement Scheme when you were born?" it's asking for grandparents details.

Whereas if I select Yes for this question I can submit the application without any issues. But am not sure if I had to select yes as it states settled status from EU settlement scheme, where as I got settled status using skilled worker route and my nationality is Indian.

You should select No to that question - try starting again, there should be another question about ILR specifically. If not, select Yes and attach a cover note explaining you have ILR and supply relevant details.