My character Thyzykeelix spawned through the Squatter's Den portal, which says in its text that you will receive a pass to the Squat, but my character did not receive a pass.
Valara claims to sell such passes, but paying her the 200 gold did not result in a pass being placed in my inventory.
If a variable is used to track citizenship now, it is not working, as approaching the gate in the sewers provided only the diplomacy check options for conversation, and no "I live here ... " option.
You should be able to buy the pass from Valara now, although I don't think I've fixed the issue where you don't get a pass from starting in the squat.
I reckon I know why that happens, just not where.