IS.96 and Naturalisation

[Den12]

Hi folks
This is what happened in April of 2017 when I got an IS.96
We applied for document certifying permanent residency for my wife and children and Permanent residency card for myself the non EU National a month before my residence card expired, after almost four weeks waiting for the home office to deduct the payment to no avail, we then got all our documents sent back with a note that they could not withdraw the applications money and therefore the application was invalid, by then I had two days left for my EEA residence card to expire and unfortunately at that period my wife and I were at a crossroad, it took some intervention and counselling and things got back to normal. It took almost two weeks for us to get to the stage of reapplying which we eventually did through a solicitor.
On our second application we received acknowledgement for all applicants and I also did biometrics but a day before my biometrics letter came I got the IS.151B and IS.151A letter from home office saying I have no further leave to remain as my EEA visa has ran out and my subsequent application has been rejected.
We immediately went to the solicitors who sent a letter to Sheffield regarding this and that we have made a second application which have been acknowledged and biometrics done, we thought noting about it again and were looking forward to the coa arriving anytime soon then, unfortunately we got another letter IS.96 saying that I do not have leave to remain and they put some restrictions, I must remain at my address, must not work or engage in any business activities, must sign at my local reporting service until further notice.
I stopped work and did report and continue to sign at Dallas Court in Manchester in April and June and before my next reporting day in August, my Permanent Residency card and that of other members of my family arrived acknowledging that Permanent Residence Status was acquired in 2016. I rang them immediately to let them know and the reporting and signing was stopped.
I have been putting off applying for citizenship because of this singular episode, I have my settled status now. Please my question is can I apply for Naturalisation or is this considered as an immigration breach for good character reference.

Many thanks

[Den12]

Hi Folks,
Please can any of gurus help me out with the above

Many thanks

[Den12]

Hi folks
@vinny, @Amber, @Secret simon and CR001
Please can somebody take a look at this scenario and advice if this amount to an immigration breach as regards applying for Naturalisation.

Many thanks