At first she didn't, mostly because she didn't know her, didn't trust her. Well, Isabelle is a ShadowHunter, And because she was protective of her brother Jace from getting hurt. Then anda have to think about it. Jace has never shown his kind, caring side towards his siblings really, just distant till Clary showed up. I'm sure Isabelle was a little jealous. Alec too.
Yes. On page 352 in City of Glass, Isabelle Petikan "I don't hate you, Clary. I even like you. If it were possible, there isn't anyone I'd rather Jace be with."
issabella doesnt really like any one frankly shes a bitch. however we discover another side to her in the latest book; city of Lost souls (which is amazing and a must read) she begins to soften towards clary and begins to Cinta simon.