I've only invaded Ulthuan once with the Wood Elves and that was a LONNNNG time ago l actually think it was 2 years ago when mortal empires first came out. I remember that the Asrai could fully settle lothern, but they couldn't settle in Avelorn? This just did not make sense to me in the slightest.
The Wood Elves could only build the grove of the Everqueen in Avelorn but they couldn't build an actual city even though Avelorn is an ancient and magical forest closer to Athel Loren and has connections to Athel Loren and tree spirits which Alarielle can recruit (to a better extent than the actual Wood Elves of Athel Loren which is just dumb)
But I have seen talks about the Wood Elves and Avelorn and settling it. Can they fully settle in Avelorn now? Honestly it would make far more sense that for the place they do settle it's in Avelorn and not Lothern. Why would they choose to settle in Ulthuan's biggest metropolis of a city and not in its magical forest connected to Athel Loren? Can they even colonise both now?