1098T doesn't have at least half time checked, my child took medical leave, do I need to pay tax on her scholarship

Hi my child was enrolled in college last year, her health deteriorated around March, and had to take medical leave. She was not able to finish the semester and took medical leave in April. 

 

The school gave her a scholarship for 36K that covered all her room and board, we didn't have to pay anything and also nothing left over either. 

 

After entering the 1098T information (36K in scholarship, and box 8 at least half time unchecked) Turbotax Premier is telling me my daughter needs to pay tax for the 36k because she is not at least half time. She got healthier towards the end of the year and has enrolled again in Jan 2021. Do we need to create a tax return for her as Turbtax suggests?