Can I apply MN1 for a child born outside UK where one parent got his ILR and another parent got her citizenship

[gaurav659]

I received my ILR in Feb 2021 and my wife will be British citizen in July 2023. We have a daughter (who is not born in UK) currently on dependent visa which will expire in Dec 2024. My daughter has completed 5 years and 4 months in UK lawfully.

Once my Wife becomes British citizen, Can I directly apply for her MN1 registration Or do I need to go through ILR route and wait for 12 months?

I have got below documentation for child registration but I am not clear on one of the requirement highlighted in Yellow "the child is settled in the UK"
What is meaning of settled here? Is this referring to ILR status?

Please help with your expert comments...

Document reference page 27
https://assets.publishing.service.gov.u ... ildren.pdf

"Children applying in line with their parents
We recognise that a number of children apply for registration under section 3(1) at
the same time as their parents apply for naturalisation. Such children have usually
been living in the UK with the parents and have completed a period of lawful
residence.
You must normally register where:
• one parent is a British citizen or about to become one through registration or
naturalisation
• the other parent (if involved in the child’s life) is a British citizen or settled in the
UK
• the child has been resident in the UK for the last 2 years - (if the child is under
the age of 2 you can accept a shorter residence period, taking into account the
age of the child)
• the child is settled in the UK
• where necessary both parents consent to the registration or any objections by
the non-applying parent are ill founded
• there is no reason to refuse on character grounds
"

[meself2]

"the child is settled in the UK"
What is meaning of settled here? Is this referring to ILR status?

Exactly.
https://www.gov.uk/indefinite-leave-to-remain

Indefinite leave to remain is how you settle in the UK. It’s also called ‘settlement’.