What happens at the Chandrasekhar Limit that lets stars collapse to neutron stars without violating the Pauli Exclusion Principle?

When a core collapses to a size less than the white dwarf radius, its electrons and protons are being rapidly converted into neutrons. By the time the collapse ends, less than 10 percent of the original electrons and protons remain and are located near the crust of the neutron star. The Pauli Exclusion principle is preserved because it is now the neutrons, acting as fermions, that supply the degeneracy pressure.