She's currently on her second internship. They're both at employers that don't screen candidates on actual programming ability (they just looked at GPA, resume/application, and then a soft interview), and the current one has a reputation for being a very meh internship, though good resume padding. The last time I helped her, her code was fine for someone who had just started learning two years ago, but I don't think she is going to progress to the point that you'd expect someone with a Master's to be at simply because she isn't doing her own homework.
I don't have a CS BS or MS, but there have been a few times where I feel like I need to get one just in case the market tanks again and they become a significant hiring criteria. But at the same time, I have to wonder just how many people currently enrolled in MS CS programs throughout the nation are doing something similar, and devaluing the worth of the degree (on paper, to potential employers) to the point that some could even look at it negatively.