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I am applying for my child for registration of British Citizenship using MN1 Form. I looked at my local NCS service but they seem to have stopped taking JCAP applications.

I've taken a look at online application and that doesn't seem to have any option either. Do you know if it's still possible as that will save me hassle of applying for passport as a separate application?

Also, there is one question I need to understand -
"Are you relying on your parent's permanent residence (either as an EEA National or the family member of an EEA National) as evidence of their settled status in the United Kingdom?"

I became citizen by naturalisation so I am applying for citizenship for my child on behalf of my settled status.
Is EEA - european economic area? I am bit confused what's the correct answer is. My common sense says, "No". However I do live here permanently in UK (which is part of, guessing, EEA)? I might have over-thought about it. What do you advise?

I have found out that this new service is called NDRS (Nationality Document Return Service)

It's for online applications only i.e. you submit your application online, pay for it etc. Then you take your PNN (Payment notification number) along with all other documents required to your preferred office within 10 or 15 days. I would advise to book your appointment first and then complete online application. because there might not be any appointments available within 10 or 15 days.

One tip for you is that - Not all local councils are offering this NDRS service yet. And the UK Gov website doesn't clearly shows which councils are offering this new NDRS service so it's best if you Google it e.g. just search for "NDRS JCAP" that would show search results of councils which offer this service. I have managed to find one within 30 miles to me.

If you want to apply for passport at the same time too i.e. JCAP - you need to get passport application form from Post Office, fill it up and take it with you to your appointment along with required documents. There is extra fee for this service so you may need to pay for it at the time of booking your NDRS appointment.

Hope it helps anyone.

along with all other documents required to your preferred office within 10 or 15 days.

I will be following this same route shortly. Is the 10 or 15 days documented anywhere?
Is it best to book appointment, and then complete online application and get referees to sign documents?

Update: Found the answer on the local council web page:

You must make your appointment before submitting your application form online. You will then need to submit your application online no earlier than 10 days prior to your appointment. Your application will be rejected if you do not attend an appointment or submit your original documents within 10 working days of submitting your application.