Wikipedia is wrong. There is no ambiguity at all on this point. The Act of Settlement makes it clear that those persons who have been Catholics are ‘excluded and are by that Act [the 1689 Bill of Rights] made for ever incapable to inherit possess or enjoy the Crown and Government of this Realm’ (emphasis added). This is consistent with the ‘once a Catholic, always a Catholic’ prejudices of the late seventeenth century. One particular fear was that a Catholic candidate might casuistically pretend to convert in order to claim the throne. The Act was therefore carefully worded to avoid that possibility.
And 1688 almost - but not quite - provides one possible precedent for someone ceasing to be Prince of Wales etc., in that James II’s newly-created Prince of Wales, his son, James Francis Edward (the ‘Old Pretender’), ceased to be the heir to the throne when James II was deposed.
Except that William III and Parliament just fudged this particular issue. Instead of having to decide whether he was still the Prince of Wales, they sidestepped the difficulty by querying whether he had been so in the first place, or indeed whether he was James’s son. Not the most elegant or legal of solutions, but one that was, in the circumstances, sufficient for their purposes.