Can I apply for a 12-year visa extension with my passport expiring in 6-7 months?

Get in touch with your embassy to find out how long before you get a new passport

I would make the new passport first, then everything will work most smootly and with least amount of time used to do it.

Apply for a new passport tomorrow. Most countries will not accept a passport with less than 6 months for entry. Most western countries take a loooooooong time to give new passports.

You are running out of time.

Your extension will end when your passport expires so 8 months left that’s what you’ll get

Any long term extension will only last until the Passport expiry date.

You can apply for a 1 year extension but when it's approved you'll only receive your extension until the expiration date of your passport. Once you receive your new passport you'll need to go get your stamps transferred to the new passport and you'll have to apply for your next extension early. This might be beneficial if you don't like the timing of your current annual extension.