She was born in the United States and both of her parents were legally within the United States when she was born. That makes her a natural born citizen both under the definition of what that term meant when it was written into the Constitution and also multiple cases where this matter has been adjudicated in court. That is simply reality.
Absolutely not. Her situation is no different than diplomats. Her parents were citizens of foreign countries making her NOT a natural born citizen. It's not just a geography question. A natural born citizen is born in the United States to two citizens of the United States.