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There is no in person service at an ho premium centre anymore. They were all closed in November 2018. You now only book an appointment with ukcvas sopra steria (third party agent) for identity check and biometric enrolment. You do not get the decision at the appointment and you do not interact with an HO caseworker.Well, it's not exactly a BRP appt. date but an in-person single day service date.
To let the application move forward give the date there when you will submit the application and add a covering letter to clarify it.
It is for a SET(M) ILR application. No points as not SET(O).
Correct. But if they choose YES then the application form asks them for evidence of company accounts etc which they do not need to submit if they do not want to rely on it
They have not changed the form of application. They considered the ILR application (you pay the fees for consideration of the application, regardless of the outcome). It failed (there is no refund for failed applications). They are offering you an alternative instead of rejecting it outright. I suspect that you will not get any refund at all.
FLR(FP)
After 10 continuous years of legal residence in the UK (including all visas).
Seven years residence in the UK by a child does not lead to ILR, it also leads to FLR(FP). Assuming the child was born abroad, the child will only qualify for ILR when the second parent does.
10 year Long Residence ILR requires 10 year actual residence in the UK. So you can apply upto 28 days before the 10th anniversary of arrival in the UK. The date of grant of the first visa is irrelevant.