If she were a student at my institution or a resident at my hospital, she would certainly be expelled/fired, and she would have a very hard time getting another placement. It rarely comes up but students and residents agree in writing to rules about their behavior when they are hired or enroll. It's called "professional conduct" and it is in force even when you are not at work/school The result of bad conduct is almost always expulsion/termination. 
It depends upon if they want to spend legal fees. If she's finishing in July/August, you're talking about a huge waste.
Also, she's Indian. Someone's gonna help her find a final year contract when another resident gets knocked-up or put on leave for failing to pass step 3.
If (and IF is the operative term) she's board eligible, and passes it during the LOA, all will be forgotten.
Another thing is after 2 years of post graduate training, with step 3, she's eligible for Florida license. She can still work as a physician in Florida.
She's a bitch, had a meltdown, is entitled, etc... but we've all heard of worse behavior (like drug abuse) being tolerated by residency programs.
I'm no lawyer or smarty-pants but anger management, AA, or whatever conciliatory gesture will make her supervisors happy is probably enough to shut people up until this blows over.
That's the culture, Bay. A lot of people like her are in decision making positions.
