BC by descent or OTHERWISE by descent?

[Oleander]

Child is born after 2002 in BOT to British born parent. Child has their UK passport (I applied for their UK passport shortly after they were born using Child passport form C2). No separate application for ‘British citizen’. Still living in BOT.

Question: is the child a British citizen by descent or is the child a British citizen by OTHERWISE than descent as born in qualifying territory (refer to document titled below). The later will give the child the ability to pass on their British citizenship to next generation which would be preferable.

BRITISH CITIZENSHIP - CHILDREN BORN OUTSIDE THE UNITED KINGDOM SINCE 1 JANUARY 1983
Published September 2015
2. CHILDREN BORN IN A BRITISH OVERSEAS TERRITORY
Children born on or after 21 May 2002
A child who is born in a qualifying territory on or after 21 May 2002 will be a British citizen otherwise than by descent if, when the child is born, one of the parents is:
 a British citizen; or
 settled either in the United Kingdom or in that territory.