Under the circumstances from all we know, it was likely a clumsy attempt by Dunham Soetoro to get Obama jr a US passport without proper documentation. She was a little con-artist
BTW I think the Soebarkah name is real interesting and might even have something to do with an adoption by Lolo. But this application does not in itself prove that Obama was adopted or renounced his citizenship. There will have to be additional documentation to show that.
Obama likely never had a US citizenship. We're still waiting for him to cough up that birth certificate that he has plastered to his forehead.
The instructions look pretty clear to me. Strike out anyone who gave up citizenship. Obama is meticulously struck out. He is being removed from an existing passport. I think this is a renewal application? Right? So he has to be removed with reason. So you dont just “Forget” to put him on the document. You put him on and strike him out. You don't black it out or cross it out. You follow the instructions, and strike out the foreign citizen that needs to be removed.