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Hi,
FYI, My spouse already has the ILR approved.

Details on my current dependent visa status,

PBS dependent visa issued - Oct 11 2019
PBS dependent visa expiry - Sep 8 2024

ILR Eligibility date = 5 years from 'Oct 11 2019' - 28 days, which comes to 'Sep 13 2024'

So, my PBS dependent visa expiry (Sep 8 2024) is 5 days before I become eligible for ILR.

Question is,

Option 1 - Can I apply for ILR before 'Sep 8 2024' and book my biometric appointment date after 'Sep 13 2024' so that I can avail the 'date of decision' to be used for my continuous residence period calculation?

Option 2 - or should I first apply for PDS dependent visa extension before 'Sep 8 2024' and vary my application to ILR after 'Sep 13 2024'?

I think, 'Option 1' would be the cleaner and easier way to do, though am not sure if that option has any regulations/conditions that am missing which would force me to go for 'Option 2'.

Your expert guidance on the above would be greatly appreciated. Thanks!

Option 1 is the way to go.
See: Applicants can benefit from the date of the ILR decision

Thanks very much 'zimba' for the clarification!!