As has already been posted this case was virtually assured of being settled.
Also, to reiterate this was always about money. It was a civil case not a criminal one.
I do not say that to suggest money in itself was VG's motivation, but it was the only remedy the court could provide if she won.
PA sealed his fate with the Matlis interview, specifically with claims he could not substantiate (sweating, Pizza Express and not regretting his relationship with Epstein).
He brazenly assumed everyone would believe him and the whole matter would go away, but when faced by VG's lawyers to prove these claims, court documents showed he could not.
At this point he had to rely on legal technicalities (which ultimately failed) or face going court and either change his story or face ridicule for his astonishing assertions and possibly be proven to a be a liar.
Once his teams technical points failed there was nowhere for him to go.
That said the loss of the photograph may have been the catalyst for an agreement to be reached, insofar it weakened VG's case against him perhaps to the point that the money offered in the settlement became palatable to PA.
I'm sure there was a lot of pressure on PA to settle by the RF. The whole saga was a sorry mess and threatened to overshadow the Jubilee and frankly his reputation was toast, win or lose after that disastrous interview.
As for posters upset that VG settled, I think you need to remember that the only way PA could fight this was with personal attacks on her and her actions and we saw the start of this in the court papers.
Whilst I do not blame her for behaviours at a young age whilst being groomed and trafficked there are many members of the public that would have done (just look at some points on this thread).
It wasn't just about PA's reputation anymore, it was hers as well and win or lose she could have come out of it as damaged as him.
As is, she's got a pretty good statement from PA, a donation to her charity (and no, I don't care if she personally benefits from that) and vindication in the sense that there is not a snowballs chance in hell that Randy Andy will resume royal duties or have his reputation restored to him.
He's been stripped of everything he cared about and frankly I think that's a pretty good result.