if the college does not consider the drops punitive, LSAC won’t either.
https://www.lsac.org/aboutlsac/policies/transcript-summarization
LSAC has its own rules, and doesn’t use the college’s calculation of GPA. For example, LSAC awards a 4.3 for a A+ on a transcript, even though the college may cap that A+ as a 4.0 in its own calculation.
All undergrad grades count, even DE. LSCA takes them all and comes up with one GPA for all colleges attended.