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Cornell Law professor Stephen W. Yale-Loehr is quoted on CNN: "Stephen Yale-Loehr, an immigration lawyer and Cornell University professor, said that the situation is "not clear-cut.""It would depend on the facts, if the State Department argues that her father's diplomatic status was still in effect. The family argues it expired. So ultimately, it may be up to a court to sort this out," he told CNN. Yale-Loehr said that if Muthana had a US passport, "that means that somebody at that point made the determination that she was a US citizen." However, he noted that many of the facts are still unknown."
Univ. of Texas Law professor Steve Vladeck has a detailed look at the case here.