https://ww2.montgomeryschoolsmd.org/departments/policy/pdf/ikcra.pdf
The withdrawal would be reflected on the transcript, unless the course is retaken in which case the new grade will be reflected. However, at this point DD should just finish the course, earn the credit, and then retake the course to improve the grade if it really matters. In the big picture, a single poor grade in a class that turned out to be too challenging isn't a huge deal-breaker for college applications, especially if there is some health issue going on. The health issue would be explained in the counselor's letter and what would be more important is how your DD bounces back after this.