Hi
Are you sure you have the correct information?
My case is quite similar and my understanding is - dependants/spouse of 10 years long residency applicant can not apply for settlement unless they complete 10 years in their own capacity.
Your friend's wife would have to apply for 2-year
further leave to remain using
FLR(M) form.
For supporting documents see
Section 11 DOCUMENTS (page 16-19) of FLR(M).
How to apply for settlement in the UK > See Completing SET(O) form
However, if you are applying on the basis of long residence, you may not include any dependants in your application. They may apply separately if they have completed the qualifying period of 10 or 14 years. If you have a partner who does not qualify, they may apply for temporary permission to stay in the UK using application form FLR(M) - if they do this, they can include any children under 18 as their dependants. For other options, see the detailed Guide SET(O).
Once 2 years on spouse visa are completed then your friend's wife can apply for settlement using SET(M).