As far as the bank is concerned, it does not care whether your reported income is a temporary or not, all it goes by is what is being stated on your application. So if she was out of work for 5 months, then yes, in the bank's eyes, the income was drastically reduced by almost 50%, and not justified the previously granted credit line.

Had she not called to recon, the app may have a chance to get approved with low limit.

When she called and then a human looked over things, that was like opening a can of worm when you had 50% less income than before.