I am an Algerian national and I came to the UK in 2006 from France As I used to live and work in France.
When I first phoned UKBA asking about what type of application I should apply with, for my residency in the UK they advised me to use EEA2 because the entry was from France.
After completing my 5 years, I applied for EEA4 unfortunately it was refused based on the fact that my wife, who is British Citizen, is considered as "a burden on the state" in their words, due to the fact she stopped working after we had a baby born in 2008. I challenged them over some letters where I contested the decision because neither I nor my wife was claiming any public funds and I was working for entire period.
They however requested us to provide a comprehensive sickness insurance or EHIC for the relevant period when she stopped working until the end of the 5 year period, naturally I couldn’t as she is British and NHS won't provide the EHIC for a British Citizen who lives in the UK. In addition to this we were not aware that a British Citizen needs Comprehensive sickness insurance being in the UK.
I then had to apply for FLR (M) as my EEA2 Expired and this was granted with no issues at all.
I then tried to apply for SET (M) straight after but they didn't accept my application as I hadn’t completed my 2 year probation period. I told them that I have been through a probation period of 6 years since I arrived in the UK. Also we have been married for 10 years and have two Children together who are both British. I have spent 6 years working in the UK and not seeking any public funds since the day I arrived. I have passed the English academic test and the Life in the UK test.
UKBA are now saying that I need to complete the 2 year probation period before I can apply for SET (M)

Is there anybody who had a similar case and can help please?
Your help is much appreciated!!
Thank you