#### People who commit crimes need education too (some would say, even more so)

It's obviously extremely difficult to speculate on this, particularly without details of the offence, and the policies and culture at your university.  In any case, since your department apparently fought for you to remain as a student at the time, logic would dictate that the same people would be happy to have you as a student as your offence becomes more remote (and given that you have not done anything wrong since then).  Moreover, if your official status in the program is that you are now "in good standing", that suggests that the effect of the initial offence on your status has now lapsed.  That also bodes well for any application you make.

Different universities have different policies when it comes to relevance/irrelevance of criminal history in student applications.  Some universities solicit information on criminal convictions and take this into account in applications, and some do not.  (For more information on this you may want to read about the ["ban the box" movement](https://www.theatlantic.com/politics/archive/2016/04/ban-the-box-comes-to-campus/480195/) in academia.)  It is unlikely that a university would solicit information on criminal offences that have not led to conviction, but in your case, where this is already known, it is possible it would be taken into account.  A recent study by [Stewart and Uggen (2019)](https://onlinelibrary.wiley.com/doi/abs/10.1111/1745-9125.12229) involved a randomised-controlled-trial to estimate the effect of disclosure of a low-level felony conviction on a college application.  They found that the rejection rate for applicants with felony convictions was nearly 2.5 times the rate of their control group.  So, that gives you a rough idea of the estimated "average" effect of an actual felony convicion on an application.

You should also note that some universities specifically go out of their way to provide education to convicted criminals, including offering education-by-correspondence to people who are actually still in prison.  There is an ethos within certain parts of academia that encourages education for people who have committed criminal offences, as a means to give them pathways towards success in a law-abiding productive career.  I happen to agree with that ethos, so I would generally not hold a prior criminal offence against an applicant for a university education program, unless there were some serious ongoing risk in admitting them.  Of course, like any other major public institutions, universities want to discourage and penalise criminal offences committed by their present students, so that cuts the other way.

Ultimately, the prospects of your application may depend heavily on who ends up assessing it ---i.e., whether it is assessed by one of the university staff who wanted you to stay, or one of the staff that wanted to get rid of you.  The best thing you can do is to be up-front about your offence in your application, make clear your contrition and subsequent good behaviour, and then hope that your undergraduate record subsequent to your offence (both good grades and good behaviour) gets you over the line.