Ouch. Discipline seems just impossible after a D. You seem to be calm and collected, though, so it sounds like you're going to make it. You're right on, consequences need be logical, timely, and followed through on.
If she realized that you 'weren't the reason for her unhappiness' and she began doing DB stuff herself, do you think your M is worth trying again?
BTW, so does she have/had ADHD or is this just bad behaviour?