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Settled status for part time contracts


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Just wondering if this is a bug or is correct...

I am managing in the National League North and was about to sign a player but after agreeing terms they didn't get a work permit. Fine (I thought they might as they had been playing in the country for a while - Johan Guadagno), so I cancelled the transfer but then he signed for a rival, and now has a box saying settled status and is turning out regularly for them. The only difference I can see is that they offered a full time contract to my part time one. Is that likely to be the difference or is this a bug? 

Thanks in advance, as I am wondering wether it is ever going to be worth approaching non UK players if part time. Also, it cost £20,000 to apply for a the work permit which was rejected. Is this application neccessary to achieve settled status?

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