I have just been reading this:
53.3 Adjudication. | USCIS
Interested in this section:
(b) Adjudication Issues .
(2) Alien Has A Travel Document From His/Her Country .
Similarly, if the applicant is in possession of a valid travel document from the country of nationality, the Form I-131 may also be deniable. There is no absolute prohibition against issuing a travel document to permit a refugee to travel to the country of last residence or nationality; however, travel to that country may preclude the alien from establishing eligibility for permanent residence under section 209 of the Act.
In the absence of proof to the contrary, a refugee who applies for and obtains a national passport or its renewal will be presumed to have intended to re-avail or return to the protection of the country of persecution. However, obtaining other documents, such as birth or marriage records, cannot be regarded as re-availment of protection. Some countries may issue passports without intending any protection to the recipient.
Notes on the implications of this section, directly impacting asylees looking for N-400 adjustment:
If you are issued with an RTD:
a) Means USCIS thinks that you do not have your COP passport - This is an important point to note, because for asylees, issues of passport renewal makes people lose sleep ahead of their citizenship interviews. If you renewed your COP passport ---> and then applied for an RTD and you get it ----> implies USCIS doesn't know you renewed your passport. Of course, you must tell the truth in your interview for citizenship...if you have renewed your passport,
IF asked for it, answer in the positive and hand it over. This information is only useful for helping you to sleep better before your interview day for citizenship.
b) There is then the issue of 'applying for a passport' = 're-availment' to COP. If you are given a RTD after you apply and obtained your COP passport, likely USCIS doesn't know you renewed your passport. Again, this implies that your citizenship interview should move forward smoothly without 're-availment' becoming an issue. The interview officer shouldn't dig into this, ordinarily.
c) Getting an RTD means you are still admissable - if you have gone through different issues, including convictions, serious issues, as long as you get an RTD means that you are still in good shape - they won't give you the RTD if you are no longer admissible. Your green card doesn't give you that information years after you get it.