Loss, retention, recovery and appeal are not the same procedure
Living abroad or holding two passports does not by itself establish that Spanish nationality has been lost. The answer depends on whether Spanish citizenship was held by origin, when and how any other citizenship was acquired, habitual residence, the relevant declaration and the evidence.
Four situations must be separated: a possible legal ground for loss, a timely retention declaration, recovery after nationality has truly been lost, and a challenge to an allegedly incorrect decision of the Spanish Civil Registry. These are legally different routes.
Article 11(2) of the Spanish Constitution protects a Spanish national by origin against deprivation of nationality. This constitutional protection must not be confused with statutory loss under Civil Code Article 24: deprivation and loss are not interchangeable concepts. Spanish nationality by origin is therefore not an automatic exemption from every statutory loss provision.