[The GT teacher gently explained to me that DD was passed up because there were limited seats and they needed trustworthy independent workers.
Assuming that the seats are already filled and there is no chance of switching over this late in the year.
My suggestions on going foward.
Ask for a specific list of what they think she needs work on, to improve in the areas they consider lacking. I would not accept a gentle generalized answers, ask for specifics. Form a game plan with the teacher to foster improvement in those areas.
If your DD is struggling with organization/motivation it is a good idea to start working on it now. Middle school and high school can be highly competetive.
Have you tried doing any accelerated work with her at home? Some kids need to be challenged/interested before they bloom. If the school is not doing it, you should try it at home and see what changes you see in her.
And most importantly! Don't let the fact that your DD did not make the top cut put in to doubt mode. This is only one year out of many. She will have more opportunities to prove herself.
It does not mean that your DD is not gifted or that she does not deserve/need a challenging curriculum!
I believe that there are 2 types of smart people
#1 is the type who sees a problem and quickly comes up with an accurate solution. "We need to cross the river, lets build a bridge."
and then is #2
"We need to cross the river, lets draw up ideas, test different materials, and then build a bridge."
#1 may prove to be more successful because he invented the bridge first.
But #2s bridge is still being used 100 years after the first bridge rotted away.