Yeah, forcing herself out of it isn’t going to work. Your DD needs to understand that blocks are a normal part of the sport. Sooner or later all gymnasts will experience it to some degree but my guess is that your DD hasn’t seen too much of her teammates dealing with blocks since she is only L7. My DD had blocks starting in Xcel Silver but it wasn’t until she was in L8 that her teammates started experiencing them.
It was hard and so many times I would think “this is it, this is what makes her quit” only for her to push past it. At the end of the day she wanted to stay in the sport. I finally had her work with a sports psychologist her senior year of high school and it was very helpful. I wish I had done that when she was in middle school. Big regret of mine now, lol but really I thought sports psych were for athletes going elite or NCAA. If you have the means to enlist a psych, I totally suggest that.
Anyways, sounds like your DD has a supportive coach. Maybe the 3 of your can have a meeting where you come up with a plan. These worked best when my DD had a plan with small and attainable steps and where she felt like she had control - in coming up with the plan and in execution of the plan. I’m sure this has been done already in some form but maybe just a goal that for one week your DD is just going to do BHS on the floor (or whatever is appropriate for where she is currently).