Sorry for the delay. and Sorry for any confusion you have experienced and that you feel the information I've provided you is misleading. But if you want to confirm the accuracy of the information I provided you, just check out this nationality chart, provided by the USCIS: http://www.uscis.gov/policymanual/PDF/NationalityChart2.pdf
As you can clearly see, it states that a child born out of wedlock, outside the US, to a US citizen mother, will be considered a US citizen if the "mother had one year of continuous physical presence
in the U.S. or OLP at any time prior to child's birth" (emphasis added).
I can't explain why the Embassy gave you wrong or inaccurate information. Rest assured that you are not the only one who has dealt with an officer that either didn't know what they were talking about, wasn't specific enough or otherwise just didn't care to be more specific. They are not known for being very helpful, unfortunately.
Now in your case, there is good news here after all! As for the physical presence requirements, the information you've most recently provided me about how long you have lived in the US changes the outcome of this case completely. The physical presence requirement can be met while you are in the US in any status. With that in mind, your child can acquire citizenship - even if born abroad - since you fulfilled the continuous physical presence residence requirement during your long residence in the US.
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