If a creature like, Cloudskate dies to a state based action like Elesh Norn, Grand Cenobite ’s -2/-2. Are the fading counters ever applied to the permanent?
I feel like the answer is no because last known information is used before state based actions are applied if the creature leaves the battlefeild.
Cloudskate will have fade (not: fading) counters on it as it enters the battlefield (C.R. 702.31a, 614.1c, 614.12), so it will have those counters before the state-based action sends it to the graveyard for having toughness 0 or less (C.R. 116.5, 704.5f, 704.4). In general, however, this will matter only if another effect cares if a creature enters or leaves the battlefield with those counters, and no such effects are present in this scenario.
I feel like the answer is no because last known information is used before state based actions are applied if the creature leaves the battlefeild.