At least they started telling people the reason; they used to play games. As for advice, a lawyer might be better than a blog. There are federal lawsuits over this. Anyway, in addition to "suspicious midwives", the concurrent existence of Mexican and US birth registrations can cause scrutiny. If that is your case, you need a lawyer for sure.
How exactly the information in the form is useful is very unclear to me anyway. How does where you went to school help determine where you were born when people could hop back and forth the border back in the day?
If you were born here, you have to convince the government were born here. If they don't give you a passport and you disagree with them, you can sue them. If you have no money for a lawyer, you can contact the ACLU and ask them to point you in the right direction which should be no problem for them since they are behind many of the lawsuits.
Some of the information requested may be less about determining citizenship than about determining identity and likelihood of association with fraudulent record makers/providers, even as there are school records that include parent/guardian/student-filled place of birth. That is where school attendance may come into play.
Evidence of physical presence during a specified period of time can also help with recognition of fraudulent documentation/application.
Has the ACLU tried to get a numerical breakdown of what percentage of the flagged applications are for persons who are ultimately issued a US passport?