Hi Ali!
Yes, she has applied being onshore. The chronology of what happened following: she has started working in March on WHV1 - lodged WHV2 end of March - was granted WHV2 two days later end of March - has continued working until November (8 months)
Her understating of conditions was that her employment will be counted under WHV1 until very end of May (WHV1 expiry) and from then on on WHV2 (was actually granted in March) until end of November. She hasn't overstayed 24 month all together.
If 6 month limitation comes in effect on the grant day it seems to be a breach, however there is no particular indication on such date as total stay period is just extended to two years once WHV2 is granted. Basically not stating the WHV1 to WHV2 transition date when conditions/limitations should reset.