First, has your DD grown lately? That can really throw them off.
I don't have completely relevant experience parenting in this sense, but I do have a 12 year old that should be competing L7 this spring.
I empathize completely, as my DD had a similar instance last fall with L7 skills - one fall on beam led to many other falls and her losing all of her beam skills above L4 while she grew about 2" in the course of six or so weeks. At the same time, her bars completely stalled. For months and months. She'd went from likely competing L7 this past spring to just repeating level 4 last fall (after having repeated L3, so quite frustrating for her).
It took a lot of grit and determination (and patience from coaches) and nearly a year for her to get (most) of those beam skills back. It wasn't until beam was set that she started to come around and make any progress on bars.
I don't know what it's like to have a burnt out 13/14 year old level 9 who maybe had hopes or expectations of college gymnastics someday. But I did have a burnt out 12 year old who seriously debated quitting for a number of months, who also has no plans of moving to Xcel or competing high school, and didn't/doesn't have college gym plans. She (I thought maturely) argued that she wasn't having fun anymore, so why put in all that work? Especially when she was missing out on so many other opportunities in order to train so much. What had been her place to let go of school drama, etc instead became a source of additional stress. She was just done.
After meltdowns ensued and things came to a head, she had a chat with coaches who suggested not quitting until she got the necessary skills for L7 (figuring she'd feel better and want to stay then) and them modifying a skill requirement on one event, DD agreed to commit to another 5 weeks or so.
Since she's gotten the skills where they need to be at the moment for L7 and has been happier. Not completely, as I still suspect it's possible that she may retire after this season. But it's better, and she feels proud to have overcome the negative.
Repeating 8 for a third time would indeed be a bummer. But she's young, and it wouldn't be the end of the world, as long as she is still working towards level 9. She needs to concentrate on the small progress, not the big picture, if she wants to stick it out.
I think the point some of the others are trying to maybe make is that th enemy here is any perceived pressure from parent, coach, etc, whether it's real or not. Letting her know it's ok to do a third season of L8, or that it's ok to quit will go a long way. Maybe set a timeline, like let's see how you feel in four weeks, etc. And as I'm sure you know, small goals are better than big goals. Getting back 5 L9 skills (or however many) would feel insurmountable to almost anyone, but focusing on trying her L9 series on low beam with the mats folded down one is maybe an achievable step...
And from my own experience, try not to talk about it unless she brings it up. Let her know you're happy to listen but that there's no pressure to talk. And if she's sad, just hug her. Let her know it's ok and healthy to be mad/sad/etc.
That all said, I would recommend that she chats to coaches - that can truly be helpful to put things into perspective and set small, measurable goals. I am sure your DD is not the first to go through this for them!
