You’re quoting the subsections but the section 2 as a whole, at the top, says:

It is the policy of the United States that no executive department or agency shall issue documents recognizing United States citizenship to, or accept documents issued by State, local, or other governments or authorities purporting to recognize United States citizenship regarding, persons when neither parent of that person is a citizen and any of the following applies:

It’s a boolean “and,” so in order for those provisions you’ve quoted to apply, the person must also not have a citizen parent.