Scholarship rules Post house settlement

I would love anyone’s informed insight into rules for renewing scholarships post house settlement.

Background: My daughter tore her ACL this season during a game and at her end of season meeting a today the coach basically said he doesn’t see her contributing next year. Things were not great before the injury.

In a perfect world she would enter the portal but with return to play being right at start of season best case scenario, we don’t have much confidence the portal will be kind to her. She is going into her senior season and has two more years of eligibility.

My question that the internet can’t seem to answer is can they decide to not renew her scholarship come July 1st? The wording in everything I have read seems murky. The most concerning thing I see is that if they decide not to renew that you can appeal, which is not very reassuring. If they are not allowed to cut based on injury then why would there need to be an appeal process?

If anyone knows the answer to this, we would appreciate it. In her meeting today the coach said that he can’t cut her scholarship but I fear he might just mean for this contracted year.
 
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