In Harry Potter, Squibs are generally known as people who cannot perform magic, and all the examples from the books appear to be descended from wizards.
In reality, we see various levels of magical control exhibited by Squibs -- they can see magically hidden things (such as ghosts, the true appearance of Hogwarts, Diagon Alley, and magically hidden creatures), use magical items, develop magical relationships with magic beasts (such as kneazle-cat hybrids), etc.
Moreover, there are many Muggles who claim abilities (such as seeing ghosts) which require magical sensitivity as well. While Fantastic Beasts and Where to Find Them claims that these people are either lying or Squibs, it's also purposefully written with an unreliable narrator.
The Muggle-born wizards we see, however, are all of standard wizarding capability.
Can Muggles give birth to a magic sensitive (but incapable of casting spells) child, equivalent to a Squib (since the term 'Squib' itself only applies to the children of wizards); a dud wizard?