While that's true, it does sound like her direct manager was outright misleading her.
Telling someone they're doing well when they're very much not (to the point their job is at risk) isn't constructive, and doesn't help anyone.
Well, not unless the manager was purposely sabotaging the employee for some reason.
It's more likely the manager is just an idiot though, and tells everyone they're doing great regardless of the reality.
Seen that before :( though I have no idea if that's the case here.