Permanent Residence Card Application refusal -British Family

[Sofie19]

I just received the refusal of my application for permanent residence and am very disappointed.

I applied in order to apply for a British passport later. This is my ultimate goal because my husband and children (5 & 3 year old) are all British, I have been living here for over 10 years and my home, my life is in UK.

The reason for their refusal is that I have been a registered jobseeker for over the maximum of 6 months period. The thing is that I didn't even know there was a 6 month maximum period.

In my application, I tried to establish my 10 year continuous residence instead of the minimum required of 5 years, because I wanted to demonstrate that I have been previously employed, even though on benefits for the last 3 years. The fact is that my British husband is a job seeker and we have a joint application as a couple. The reason for me not working is personal circumstances and choice to be a stay at home mum until little one goes to reception and can then seek full time employment. I am surprised that there is no allowance for a mum of young children to be a 'qualified' person while being a stay at home mum!

1. Any advise on this issue would be much appreciated! Can I appeal on any basis?
(the letter gives me an appeal link option)

Furthermore, the Home Office refusal letter suggest at the end that there are other available routes like visa for the '5 year partner route' or '5 year parent route' by filling the FLR forms. But from what I read these visas are for non EU citizens.
2. Is that correct? I am confused from them adding this suggestion.

The letter at the end states that:
"the decision not to issue a residence card does not require you to leave the UK if you can otherwise demonstrate that you have the right to reside under the regulation."

This is how the letter finishes! So it implies at the end that I need to take further actions to demonstrate my right to reside!
3. Like what? Perhaps the Registration Certificate? But aren't we all EU citizens not required to do anything and the situation remains the same for 2 years after the article 50 trigger?

All in all, I feel that perhaps I should do nothing further and just wait for the storm to pass, the negotiations with EU to be finalised, not to panic and be patient until common sense returns to this country as far as passports and 'qualified' persons are concerned.