Age 7, guessing first grade? Then they probably gave the beginning reading test. Like many higly gifted, I'd guess your kid learned to read themselves and has far less need for the specific decoding skills of teacher-taught beginning readers.

Here are the sections in that test:
•Subtest 1, Initial Consonants and Consonant Clusters
•Subtest 2, Final Consonants and Consonant Clusters
•Subtest 3, Vowels
•Subtest 4, Basic Story Words

So, a self-taught whole word reader might tank on the first three subtests. Even the next level (Early Reader) has a decoding focus.