Latinos can somewhat refer to the language family, and thus include European.
In fact the word references Europe.
In the US people tend to think that word only means people from Central & South America. Because they take it as a shortening of Latin[o] American.
Yet even that describes Native American (some who would never identify as Latino), mixed Native American & European, full European, as well as a ton of other immigrants.
Latino references Latin by extension the Romance Language, which includes Spanish, that Dafne Keen Fernández does speak.
That said yes she apparently was born in Spain, and lives in England, Spanish mother, English father , so yes she is both Latin[a] and European.
She is not however Latin
American.
At least that is my understanding.