So question 1: is that correct? I was under the impression qualified Roth distributions do not need to be reported on your taxes.

Qualified Roth distributions are not taxable, but do need to be reported on your tax return - see Part III on Form 8606 - https://www.irs.gov/pub/irs-pdf/f8606.pdf

So question 2: why would money have been withheld and should she get it back with her taxes? And is that maybe why she needs an 8606?

That's a default with most brokerages, there should have been an option to not withhold taxes

So question 3: does anyone have any advice on how to do that?

Not familiar with HRB, personally I suggest FreeTaxUSA for free filing federal