I think that colleges overall are looking for kids who will do well at their school. If her grades are poor and her attendance is dismal in high school, I think they can assume that the same will be true in college-- regardless of the reasons. They don’t know the applicants; all they have is numbers and essays and letters of recommendation.
I think the first plan of attack is to find a doctor or a treatment that will ameliorate the medical issue. First and foremost because you daughter needs and deserves a resolution to the problem. And secondly because then she can say “here’s what was wrong but it’s no longer an issue.”
That’s asking a lot in a relatively short time span, I realize. And I assume you’re being as aggressive as you can to get her relief.
So I would encourage her to cast a wide net-- apply to schools where she’s likely to be accepted, as well as some of those reaches she has her eye on. But I would absolutely work with her to find some matches and safeties where she can be happy— even if for a year or two until her stats improve and make her a more likely candidate for transfer down the road.