Child overstay before switch to ilr from T2 dependant

[berriesE]

Hello everyone, please can someone help...
My daughter was born in UK in 2013 and got T2 dependant visa till 28/02/2019.
My husband and I have got our ilr from Jan 2017.
We were not sure if we should get her British citizenship or keep her Chinese one (her little brother cannot get Chinese citizenship because he was born after we both get ilr)
This year we decided we should keep her Chinese citizenship and apply for ilr for her.
The problem is that I have forgotten about this matter and realised she is now overstay for 3 months.....
So can I still go ahead apply for her or we should go back to China and apply there?
Or can I only get her British citizenship now?
Or have I totally messed up

Thank you for your time for reading this.

[hina_pirzada]

If a child born in the UK and any one of the parent got ILR, so the child automatically qualified for Citizenship. She is not overstayer because the child who born in the UK doesn't need a visa until he/she travel outside the UK.

It is advisable to apply for citizenship as soon.

Hope it will help.