It does? How? All this says is, "don't stonewall and cooperate".
I agree with your comments about the application of this law...it only applies if she was a covert operative. There is no way that the CIA would have even acknowledge her existence if she was a covert or undercover agent. I don't even think that they would acknowledge it if she was, at one time, an undercover agent.
The tacit admission that she worked for the CIA is quite telling as to the status of her employment. The known social circles are just an additional reason to (rightly) believe that she was nothing more than an analyst.
Ockham's Razor: "Pluralitas non est ponenda sine neccesitate". Translation, "entities should not be multiplied unnecessarily". In other words, the idea that the simplest or most obvious explanation of several competing ones is the one that should be preferred until it is proven wrong.
Result: No law was broken, period! End of story!