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I have received my ILR today. One of my children was born in UK in 2016 with Indian passport. Her Visa(Tier 2 general dependent visa expires on 15Sep2022)
1. Can I apply for her naturalization Today? is there a need for her to finish 5 years in Tier2 dependent visa before applying for naturalization?

2. If I apply for naturalization Today and what happens if the Visa expires before the naturalization? Should I apply for the extension of Tier 2 Dependent visa?

Children do NOT naturalise. A baby born in the UK is entitled to be registered as British when one parent settles (using form MN1). Their visa status is irrelevant. As the child is below 10 and thus is not subject to good character requirements, overstaying has no effect. The visa status can be ignored unless you want to travel during MN1 application

Thank for response and details provided.
I am very much appreciated it