It does have a rather badly thought out and drafted clause that does in theory allow long term residents to stay. However, there is a bit in the clause that demands that one can show sufficient income to avoid state subsidy. Nobody has stated that a pension is sufficient partly because the UK has not categorically stated that it will still pay British pensions abroad.
I'm not eligible for my pension until March next year and currently the cut off date for applications to remain in Spain stops in January. There are other complications which may or may not work to my benefit. The Covid crisis has put all the government depts so far behind that I think it will be impossible for them to stick to the current timetable.
Given there are a lot of British people living in Spain on their pension, not specifically dealing with such case seems like a gross oversight to me. I think in part, nobody believed the UK would be stupid enough to crash out of the EU in the way it has.
From the other side of the world, watching Brexit was like watching the Titanic sink.
