If someone with a child came to the U.S. on a B2 tourist visa and then wanted to immigrate, and a US citizen sibling applied for permanent residency on family basis to adjust status, but the tourist visa is overstayed while waiting for the green card (I guess ~15 years), does that make the parent and child an "illegal immigrant" or not?
Yes, they will be considered illegal immigrants once they overstay the tourist visa.
The USC siblings petition does not give them any legal status.
Also, because of overstay, while in the USA they will NOT be able to become "legal" based on the siblings petition.
Depending on how long the overstay period is, a ban of 3 or 10 years might kick in once they leave USA.
So when an adjustment of status / AOS is filed, they would need to leave the country and return when the immigration visa is ready like in 15 years?
Are you sure there is no way to become a permanent resident if a visa is overstayed?
Ive heard of people getting green cards while in the U.S. Was this possible in the 90s or early 00s perhaps?
They can get green cards only as a immediate relative of a US Citizen.
Immediate relatives are,
Spuouses, Children and Parents of a US Citizen.
Siblings are not considered Immediate relatives and are not eligible for the overstay forgiveness.
Does a family based adjustment of status application make you legal even if overstayed?