A lot of people have already tackled why she seems like a good person who overcame this past and is admirable in many ways for being able to change her views. The worst thing here is the "still has some concerning views." You say they're not overtly racist, so I'm not really sure what they are. The 14 words and shit is some heavy, awful stuff, BUT if she was raised in a vacuum of it and came out of that vacuum by her own volition and regrets it as deeply as it seems, I can sort of understand.

On the one hand I would never want any of my children to be exposed to her family and how do you tell a daughter they can't see their parents or that her parents can't see their grandchildren.

People always worry about this, and I wouldn't want them veyr involved either. But don't worry as much about her family as you might think. My mother is super not racist, and her parents and siblings are racist as fuck. I was over there all the time, Nana and Papa (her side of the family) even watched me all the time due to financial reasons in my formative years (like 3-10, after pre-school or school) and I knew racism was wrong AT LEAST by the time I was 6 and remember telling them this at 6 (my best friend was a Hawaiian girl they called a "chink" and sometimes a "Jap" and warned me away from - lovely eh?) repeatedly. Honestly, it was a REALLY good lesson for me and I think I'm better off for seeing their totally ridiculous racism. As long as it's not the ONLY exposure and you have parents who guide you well, it can be an excellent way to inoculate a kid to racism to have a few racist relatives. I have other friends and have read other similar stories here on Reddit - basically, some racist extended family won't harm your kids as much as you think and it's a great way to teach kids that not all adults have trusthworthy views (something little kids often don't realize but need to learn).