How are illiquid options settled on expiry?

Suppose if I buy option which becomes deep ITM and hence illiquid so there is no change in the price so does it settles at LTP or the PnL is calculated based on Spot and Strike price on expiry?

Upon expiry ITM Options will be settled at Intrinsic Value, any profit or loss you will be making will be credited to / debited from your account.

You can learn more about Options on Varsity:

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Why PNL is showing wrong here?

I have bough 2750 Ce and Sold 2800 CE and held till expiry

For account related queries would suggest you create a ticket at Team will have this checked and assist.