Your DD's profile is very similar to my DS(7)'s, except DS is stronger with perceptual and weaker in verbal.
DS waffles between much higher level novels and picture books that fascinated him 4+ years ago. At school there were issues with boredom during free-reading time because he was picking those easier books at the beginning of the week and getting stuck with them for the rest of the week. We talked to him about his responsibility in picking something that will last, and the teacher also gave him permission to change books as often as he wants during the week. That seems to have resolved the problem.
What I notice is that he reads more difficult books when he has time to really get into it, and when he has no big distractions. School is a big distraction. He knows he is different, and he wants things to talk about and share with his friends. At home he relaxes and will switch from high level books and pick up Robert Munsch (or the like) for some laughs. Stacked by his bed are books ranging from grade 1 level straight through to near-adult level books and he enjoys them all.
It sounds like, with your DD, there is a bit more than this going on, but it is worth exploring. She is probably well able to handle a discussion about good reasons for varying her choices in reading. I talk to my sons about the need to challenge themselves, but I also make a point of laughing with them at the easy books so they know it is okay to enjoy all levels.
A bright side for you is that her teacher knows very well that she is performing below her level. Perhaps over time she will get comfortable enough to challenge herself. It has taken a while for DS's teacher to understand that my sons are more capable than they show in more than just language arts and sciences which are the most obvious differences.
