Working on a study permit extension

[pir4cy]

Hey everyone,
I applied for a study permit extension on November 23 (my study permit was expiring on December 31). Now due to some personal reasons I have decided not to study further and go for a pgwp for 8-months/1 year.
Up until now the plan was pretty clear -

1. Wait for study permit extension and work as an intern till I get an extension.
2. Apply for a pgwp and then move to a full-time role.

However, I have now learned that I cannot work until I actually get an approved pgwp, if I have no intention of studying further.
Is that true? If it is, what about the work I've been doing since I applied for my study permit extension?
I'm now just stuck in a limbo I guess.