You earn nights and points as the hotel bills your credit card (often every week or two, but you might want to discuss this with the GM), but officially your status during a stay is what it was when you checked in. OTOH, status means little at an extended stay property and the GM can choose to voluntarily give you various perks (such as lounge access if applicable or a periodic F&B credit, etc.).

Hotels tend to preauthorize credit cards for the expected costs of a stay plus a margin for error, so a well managed property shouldn't be in the position of having a guest who can't pay the bill. If there's a time limit to the preauthorized amount, the bill should be settled before the deadline and not all on the morning of checkout.