Not under the table.
You've got to read section 7 and section 7(bis) together.
Section 7 says:
"The following persons shall acquire Thai nationality by birth:
(1) a person born of a father or a mother of Thai nationality, whether inside or outside the Kingdom of Thailand;
(2) a person born in the Kingdom of Thailand, except those under section 7 bis paragraph one.
Then, section 7 bis paragraph one basically goes onto define who it means by this, which is any person born to a parent who is in Thailand on temporary visa, or a parent who is here illegally.
So who is left? Those born here to parents who are both here on permanent visas - ie. Thai PR. Though it isn't stated explicitly, thats the implication.
Section 17 alludes to them again (loss of Thai nationality) as there is a special section just for these children who can lose Thai nationality under certain circumstance.
https://www.thaicitizenship.com/thai-dual-citizenship/
I personally know 4 people who have Thai citizenship from this method. All blond haired and blue eyed, born in the 1970s to British parents with PR. Back then, it must be noted, up until the early 1970s, basically every extension of stay effectively granted you PR, so these people got it as a matter of course. Their kids - most who are friends of mine, are living and working here in Bangkok, one who owns a large business many in Bangkok may have heard of.
http://web.krisdika.go.th/data/document/ext810/810050_0001.pdf