Is this where her chest clip should sit?

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The clip should sit at the armpit, tight enough that you can't pinch the slack 🙂

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Yes. It shouldn’t ever sit next to the throat or on the stomach. It needs to sit on the middle of the sternum which is their chest. So yes, you’re correct.

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This is what I meant. But I just realized it may be buckled in the middle seat with a lap belt?

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The clip is supposed to be in line with armpits. I'd move it up higher personally. And also I have always been told to put the seatbelts back through the slots. Instead of just the once.