I’m a Canadian citizen living in the USA my wife is a USA citizen but she’s pregnant and we want to move back to Canada how does our application get affected if she gives birth in the USA after sending in our application or is there a way for us to do the application with her being in Canada
As you are a Canadian citizen, you would have to apply for Canadian citizenship for your child once it is born (if born in the US as you say). If this happens after you have applied, you will have to inform CIC and provide proof that you have applied for citizenship by descent for your child.
The only way you can apply inland is if you are BOTH actually in Canada and continue to stay there. Your wife could try to come into Canada as a visitor, but must NOT appear to be moving there for good, so would need to maintain ongoing tires back to the USA (job, property etc.). Probably best for you to apply outland, in which case YOU will have to prove intent to return to Canada if approved, which is a LOT more than simply saying 'I will - honest'. Personally, I would go the outland route, but only my opinion.