"and the part about 1031 exchange is not irrelevant."

This specifically is what was asked: "What about the 1031 exchange, can you really EXCHANGE INTO YOUR DREAM HOME?"

And the answer is, not any longer. That changed in the 1990s.

You didn't ask the same thing that you are now stating applies to this specific client. We can't answer something we hadn't been asked, yet.

"I would love to get some feedback on a "flyer" the taxpayer provided me she received from an "exchange company"."

We can't see that. Is there a date on it?

"The scary part besides how much she will owe is how mislead she been about capital gains in regards to her sale of a house that had mixed use and thus would not get a full home sale exclusion."

You cannot cry for a client who made tons of money and needs to pay some taxes on it. I'd swap places with that every time. Boo hoo.

I would expect you can learn what applies and how to use that for the tax prep. Are you using any IRS or web resources, such as:

https://www.1031crowdfunding.com/converting-1031-exchange-to-principal-residence/

Just watch for dates, since these rules changed a few times in the past 2  or 3 decades.