I shall comment again now your solicitor has come to her senses, somewhat at least.
Your solicitor needs to realise that if your wife doesn't appeal and ask the tribunal to consider to FLR(M)
under the transitional protection she will be set on a course of settlement which is at least another 5 years, with a financial requirement and much more expense. If she goes for judicial review to get FLR(O) that's a 10 year route to settlement which is even longer! Not to mention that lawful residence could also be considered broken for the purpose of Long Residence ILR.
Your solicitor has been very very sloppy to say the least. She could have still rectified applying for FLR(O) by varying it to FLR(M), the fact she did not is very concerning and I would be asking her to pay for any additional applications and expense.