HK, I have no expertise in this area. The only idea I can offer you is to ask if the mental health professionals can come to the disability office with you, so you can short-circuit the whole "what do you suggest," "well, what do you suggest" cycle (which sounds immensely frustrating). This sounds like it would be well worth paying for, even if it is not covered by insurance (which it might not be, since the time involved is not therapy time).
Credit recovery does sound like an accommodation worth pursuing, especially since it could probably be tweaked by different professors to overcome their individual prejudices. If she can write down a description of the memory issue (which you have done vividly), it might help professors understand what she is laboring under. I think that everyone has had the experience of not being able to bring up information that is near the tip of their tongue, but stubbornly not emerging, and then remembering it a few hours later. The idea that that is happening during an exam consistently should be horrifying to an educator.
Best of luck to you. It sounds like a horrifying situation.
