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You are not eligible for a work permit because you did not apply for an "Inland Sponsorship". You submitted an Outland application, from outside Canada. You then decided to come to Canada as a visitor and do a virtual landing, which is ok, however that doesn't mean that your application became...

Why wouldn't he be able to renew his passport though? I am out of status in Canada and I have renewed my passport at my country's embassy with no issues. He is still a citizen of that country and he is still entitled to a passport, otherwise he wouldn't even be able to fly back to his home...