We had a very talented levl 7 gymnast who started with fears on giant - flyaway. It started there but eventually started inpacting BWO-BHS on beam. It was all mental as she was a beautiful, capable gymnast. Coaches tried working with her, but when it wasn't helping they got frustrated too. She would refuse to do giants at first and then it became crying and holding up practice.
She took half a year off and came back after states to start training for the next season. The same thing started all over again. HC even sent her to another gym (friendly rivalry) about 45-60 minutes away. It helped a little, but was too far away to continue to try to work through her issues.
Ultimately, she went to a YMCA program which was better suited for her, as it was less pressure, more relaxed and frankly, does not push her to train. So, she is able to stay in gymnastics and compete but at a level that is more suited to her mentally/emotionally. The downside is she will never progress to her full "physical" potential, but if she stayed in a JO program she probably would have quit for good.
Bottom line is, I think there are options for your DD to stay in the sport.
Good luck!