Internal or external organs generally don't really matter that much in terms of improved athletic performance. Sure, it matters a big deal if you're having a relationship but in terms of sports, the only thing they really care about in the end is hormone levels, since those affect performance greatly. Guys who lose their external reproductive organs in an accident or women who lose their uterus and/or ovaries from cancer don't suddenly change sex.
In this case, after medical treatment, she's back to the normal range. You guys do realize that even transgender women (born a complete male) are allowed to compete in the Olympics as a female athlete, if they have the proper surgery and their hormones are tested to be within range. It's really not that different from this case so her competing again after some medical attention isn't a surprise at all.