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Hope these will be helpful to others!The relevant Rules regarding the qualifying period for settlement is:
287(d) the applicant was admitted to the UK or given an extension of stay as the spouse or civil partner of a Relevant Points Based System Migrant, and then obtained an extension of stay under paragraphs 281 to 286 of these Rules and has completed a period of 2 years as the spouse or civil partner of the person who is now present and settled here;
Therefore, applicants must have completed the 2 years qualifying period, with leave as a dependant of the person now present and settled, before applying for ILR themselves on form SET(M). This can include leave as a dependant of a pre-PBS category (e.g. Work Permit) as long as the partner was granted an extension as a PBS migrant before gaining ILR.
Unfortunately we ain't the lucky ones, but the whole process to us was such a waste of money and time! Even the last HO officer remebered us (as a result of our frequent visits) and felt sorry for us that we had to spent time and money to follow this switching rule.Some posts that detail approval of applications not in accordance with immigration rules, that you refer to, represent instances (according to the learned members) where the applicant has been "lucky" due to ignorance of the caseworker about the meaning and interpretation of the recent changes. Unfortunately, your spouse wasn't lucky in that sense.