Yes, although it may look strange, that is correct and even necessary. To have good control, you must hit inside the knee. Beginners will often rotate the other way, which is not only bad from a technical point of view, but can be really dangerous in case you stop too early.
I think the camera angle is making how ankle rotation look disproportionate to her body rotation too.
It's correct - turning outwards on the lunge increases stability, less chance of ankle sprain, easier to recover balance.
