The 17-year-old Jutanugarn, having posted a runner-up finish on the LPGA Tour this year and playing on a sponsor's exemption, suffered three bogeys on her first nine at the Kingsmill Resort & Spa to fall out of the lead she had held on Thursday.
She came back, however, to shoot an even-par 71 for a two-day total of 7-under 135. The 64 she shot Thursday is the low round of the event.
LPGA Tour Hall of Fame member Juli Inkster, celebrating her 30th year of competition on the circuit, was in the group at 138.
World No. 1 Inbee Park slipped to a 72 Friday and shared 19th place at 140.