The problem with PhD as work experience is not about the way you are paid but about the fact that this experience is part of your studies which is necessary for a diploma.
For the phD case, The line is blurred between work experience and study. I know that in several countries in Europe it is considered as a legit work experience, you even pay taxes and can claim EI and CPP, whereas it is not the case in Canada or the U.S where you are only a student.
I would say it depend on the VO and if it is well explained in a letter of explanation.
But after 4 months chances of being rejected are becoming very low.