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Thanks! I did some research on the forum regarding finding other ways to sponsor her, can I renounce my PR and re-apply through EE CEC again, including my wife this time? Though I will be out of status in Canada and couldn't work for a few months.

Unless you have a very high CRS score and work in a priority occupation that would be a huge risk and unlikely to be only a few months before you can work.
 
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Thanks! I did some research on the forum regarding finding other ways to sponsor her, can I renounce my PR and re-apply through EE CEC again, including my wife this time? Though I will be out of status in Canada and couldn't work for a few months.

You need to hire an immigration lawyer to find out if this is possible. It may or may not be. Note that you cannot be out of status in Canada if you are applying for PR under an economic immigration stream. The application cannot be approved if you are out of status. You would need to leave Canada after renouncing PR.
 
How do you know it's red flagged? Did you receive PFL as well? What is your date "enter into common law relationship" on the form IMM 1344? Did you put July 2023 as your date into common law?
I put July 2024 as the date we entered into common law. About the red flag thing, I got an email from my Primary VO Mississauga that they are transferring my file to Etobicoke and I might need an interview and that Etobicoke will now make final decision on the Principal Applicant's eligibility.
 
You need to respond.

If you had only been cohabiting for 5 months on the day you became a PR, you were NOT deemed to be Common-Law and have nothing to worry about.

If the officer flagged this, because they thought you were CL when you became a PR, they are mistaken, so long as you have evidence that you had NOT lived together for 365 days, or more, when you became a PR.
Thank you so much for your reply. This is assuring to know that I'm not wrong in this situation and as long as I can state the obvious clearly to the officer I should be fine.