To be clear from the outset, while the facts in this post are accurate, the proposed trip is purely hypothetical. I am simply curious about what would happen if there actually was such a trip planned and figure that only FFers to/from Israel and the US might be able to answer the question.

Fact 1. My daughter is a dual citizen who would have to enter the US on her American passport and return to Israel on her Israeli passport. She has not spent sufficient time in the US to qualify her daughter to be an American citizen.
Fact 2. My son-in-law is an Israeli citizen who has a visa which allows him multiple entries into the US.
Fact 3. My granddaughter is 11 weeks old and, for some reason, refuses to get out of her crib and go to the Interior Ministry to get a passport.

Hypothetical trip: My daughter and son-in-law want to visit the U.S. and take my granddaughter with them.

How would they handle this? Can my daughter get the baby put onto her two passports? (Remember, the baby is not an American.)

If my son-in-law puts the baby on his Israeli passport, would his U.S. multi-entrance visa apply to her also?

Would the baby have to get her own Israeli passport, make an appointment for a visa interview at the American consulate, and hope that she is not considered to be a terrorist threat?

Is there still another way that the baby could get permission to enter both countries?