All the evidence points to him being a citizen by Act of Congress. I believe his mother met the residency requirements, that she was a citizen of the US at the time Ted was born, that she and Ted's father were married, and I also believe Cruz met the citizenship retention requirements.
-- Is the USCIS categorization and policy wrong? --
I'd call it "imprecise," but in a way that is useful for USCIS operative purposes. The vast majority of persons who submit claims of US citizenship for adjudication, on operation of 8 USC 1401 - 8 USC 1407, and 8 USC 1409 submit their claims to the State Department, not to USCIS. The State Department has its own set of "imprecisions" that suit its internal operation.
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Cruz was a US citizen at the moment of birth.
This by the standards of the men that founded this country.
Thanks for your reply.
I think your categorizations are going even further astray into the weeds. They seem to be:
1) Born Citizen - “Natural” Born
2) Born CItizen - By Law
3) CItizen - By Naturalization Process after Birth