Well I'd argue that he should have been squawking 2000, but other than that it's the cloudbase experienced by the pilot that matters, not what was most recently reported by the ATIS. If he saw two lights by the DH, and judged visibility remained adequate, he was totally within his legal and practical rights to land.
The practicalities are simple enough: he should have continued to DH, if he saw two lights he was within rights to land - with standard practice being to level for a short period in case things come together whilst over the runway. If he didn't at DH, he should have flown the missed approach procedure and either diverted or had another go. No different to better or worse conditions really.
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Last edited by Genghis the Engineer; 14th Sep 2021 at 16:51.