How have they interpreted it?
Citation?
If that wasn't true then the US wouldn't have any grounds to prosecute foreign terrorists, but they obviously do. You don't need a citation for that do you?
The last cases that the Supreme Court ruled upon which dealt with the scope of "jurisdiction" and birthright citizenship occurred a long time ago.
More broadly, the United States Government often takes the position that even actions outside of the United States can violate US Law. For example, Mr. Mueller's group has filed indictments against Russian citizens and corporations for actions that they allegedly performed while in Russia.
So from the point of view of at least Mr. Mueller and his group, the jurisdiction of the USA for criminal prosecution extends to Russian citizens living in Russia. But that kind of "jurisdiction" is not the same as the "jurisdiction" referred to in the 14th Amendment.