To be clear, the relevant time period is FOUR years preceding the date of application.We moved to Canada 3yrs back, before that we were in USA.
So, in the relevant 5 years we were in USA >183 days(2years).
That means we have to get Police clearance from USA before we apply?
Under current procedure, if 183 or more days, total, have been spent in a single country, such as the U.S., within the preceding four years, a police certificate or clearance from that country needs to be submitted with the application. Looks like the answer to your question is thus YES.
But remember, what is specifically required in the application is administratively determined and can be changed at any time (but must be consistent with the Citizenship Act and applicable Regulations). There is no statute or regulation that requires applicants to submit a police certificate. So applicants need to be sure to follow the applicable instructions for the application they are making. (Unfortunately, I suspect that new forms reflecting changes like the 3/5 rule will not be available until the changes actually take effect; similarly as to the instructions. Ironically, IRCC is promising to issue totally updated and revised PDIs for citizenship with the next ten days or so. And then the law is changing.)
This is similar to proof of language ability. I recall someone saying that the language requirement is determined by Regulation. That is correct generally but the regulation is stated in rather general terms. The specific requirements imposed by IRCC, as to what proof of language ability must be submitted with the application, are administratively determined. (While the process for revising Regulations is not as burdensome as passing amendments to the statutes, it is still a more formal, public process, which is relatively burdensome and takes time . . . administrative changes can be implemented with little or no notice, no need for public consultations, no formal notice in the Gazette, and so on.)
It is likely there will be a new application form issued fairly soon. It will probably keep the police certificate requirement, and the proof of language requirement, the same as it now is. (Language requirement will eventually change when the Bill C-6 amendment as to age comes into force.)