This doesn't seem to be what happened: "she open with the original 132,000 that she received from her work in 2019."

You told us she took a Complete Account distribution and paid taxes on it.

Now it is not Retirement money and does not qualify to be in an IRA any longer.

If she had taken the distribution from work, and within the Rollover timeframe, she kept some of it and rolled the rest, she would have a Partial Taxable Distribution and the rest as rollover. Or, if she put $118k into Roth, she would have Partial Taxable Distribution and the rest Taxable Conversion.

What you stated isn't allowed. You should talk to that Banker or brokerage about revising this.