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There is nothing "automatic" about it and the approval of your application is irrelevant in this context.
All applications for children born to non-British parents abroad are at the Home Secretary's discretion. And the Home Secretary has decided that the discretion would be exercised in such a manner that the child is expected to have ILR before applying for British citizenship or have "strong compelling compassionate" reasons for not having ILR.
Registration of children as British citizens: caseworker guidance wrote:(Page 31)
Child’s immigration status
As a general principle, the expectation is that there should be a staged approach to permanent residence and citizenship. This means that the child will first achieve one of the following before being considered for British citizenship:
•indefinite leave (IL)
•permanent residence under the European Economic Area (EEA) regulations
Given this you should normally only register a child under section 3(1) who has not been granted IL or permanent residence where there are strong compelling compassionate circumstances to do so. British citizenship does not give a minor any additional benefits that cannot be obtained through IL and therefore representations on the basis of issues such as access to education are unlikely to be sufficient to justify the exercise of discretion.