It is terrible.
Yes, you should try and no you shouldn’t try to explain it because no one can say with certainty the student wouldn’t have gotten the same grade otherwise.
Yes to a counselor writing it - and if teachers are aware, they might include as well. Counselors don 't always write vs. simply giving the profile as they often don’t know the students.
I know the student doesn’t want to relive it so this may be so not worth it but many schools have an adversity essay and it could work although if having to think about it and write about it would be traumatic, it would absolutely not be worth it.
There are 20 common app spots so applying to a college is always worth it if you can afford it (U of M is well over $300K for four years out of state and you’re unlikely to get money).
Use your 20 spots - as long as you have one, preferably 2-3 schools you know you’ll get into, you know you can afford or are willing to pay for, and you’d be excited to attend, the rest of the list can be anything.
Clearly, the student is a possibility for U of M - so it’s worth the app (if you’re again, willing to pay at current prices $76K for the first two years and $80K for the final two…plus inflation.
Best of luck to your daughter. What a horrible thing to happen.