Isn't it possible for both of Petunia's parents to be squibs? That might make her a squib, right? And that way Lily is still born to non-magic parents. That would make sense too because Petunia says that her parents were extatic upon finding out Lily was a witch. Would normal parents be that excited?
Anyway though, where does it actually say that Lily was born to non-magic parents?
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