>>> In Cruz’s case, in order for his citizenship to persist, he (the child) is ALSO required to meet US residence requirements (Section 301(b) of the 1952 naturalization Act),
And therein lies your problem.
You cited the 1952 naturalization act which grants Cruz status as a NATURALIZED citizen.
You cannot be both.
The title of the Act doesn't control. One will find the language of the 14th amendment in the 1952 Naturalization Act! What controls (see numerous SCOTUS precedents) is whether citizenship depends solely on an Act of Congress. If so, the person is naturalized pursuant to a power of Congress, whether they go through an individualized "naturalization process" (or "naturalization procedure") or not.
I do agree that a person cannot be both natural born and naturalized, but Judge Pellegrini thinks that it is possible for one person to be both natural born and naturalized. He doesn't say so in his opinion, at least not in so many words, but he is quoted as saying it in roughly those words, in open court.