This tournament does not have "official" status, and therefore the organizer has the right to manage the situation as they see fit.
And moreover, she has already shown everyone that she is correcting her behavior.
And showing that you are correcting your behavior and actually correcting it are two different things, don't you think?
This is not an official tournament, but rather a fan tournament, so it's up to the organizer's conscience whether or not to allow a player with a cheating history in such a tournament. Besides, I don't see any protests among the players participating there.
The administration claims that a player with a cheating history is not allowed in tournaments, but in reality, it's different.