Cryptic crossword clue
A good neighbour’s first settled in country to become sluggish 8

The most common and most likely answer to this crossword clue is the 8 letter word STAGNATE

I've seen this crossword clue in The Daily Telegraph
S
T
A
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Buddy explains!

The straight part
We know that "to become sluggish" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case to become sluggish = stagnate.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does STAGNATE mean?

STAGNATE verb
  1. To cease motion, activity, or progress:

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