Expired passport for FLR(FP)

[SMTarz]

Hello, I have recently submitted an application for my wife, FLR(FP) - private life in uk outside the rules of immigration. Cut a long story short, My wife has been an overstayer since end of 2012. We have a 2 children, eldest in school and nearly 5 and youngest little over 1. I am British and both our children have British passports. Due to issues at home and with finances we have only recently been able to afford/submit application. I work nights and was earning about 23k and recently got increased to 28k.

Application submitted: 10/04/19
Supporting documents submitted and picture/finger print taken for Biometric: 18/08/19 at Lunar House Croydon.

My wife’s passport has been held by the Home Office since 2012 from her previous application but expired in 2017. When we handed all supporting documents we stated that HO still held her passport and she didn’t have any other form of ID. Except a photo copy of her passport. They took her picture and finger prints after we had this conversation. All documents were copied by them and returned back to us that day and we were told they would be in touch.

Reading some post on here i understand it says application will be refused without a valid in date passport. My question is would they not have mentioned this on the day that this wasn’t acceptable?