I'll be honest and say I don't know. I had to do a little research so I could give you even half an answer. I think that there is a pretty good possibility of there being a disqualification (even though its not spelled out definitively in the DoD instruction that DoDMERB uses) based on a couple of items.
Photosensitivity, if the area is exposed, and it sunburns easily, then that could be a case for disqualification.
Treatment options, frequent use of either cortisone creams or possibly injections.
The possibility of it becoming systemic lupus (according to what I've read thats less than 5%).
Now for the positives, the fact that its localized, and it does not seem like it is very involved. Also as long as she is asymptomatic, meaning no pain, and hopefully no drainage.
You did not state if the diagnosis was done by a dermatologist or by a pediatrician/family practice physician. If the diagnosis was not done by a dermatologist, you may want to consider doing that (remember I only advise!! There is nothing that says you have to do it!).
At this point in time I would start to gather copies of all medical records regarding this. DoDMERB will be asking for them shortly. As for waiver chances, again, if she is disqualified I'm not sure how the waiver authorities will view this for a waiver, but I would think that it would be viewed in a positive light.
Again, these are just guesses on my part, and there may not be a disqualification by DoDMERB, or it may be viewed differently by the waiver authorities and no waiver will be given. I just don't know.
So, since I've been such a fountain of knowledge, please keep us informed, let us know if she gets a disqualification from DoDMERB, and if she does, what the waiver outcome is.
And as always, if you have any questions please feel free to ask away!! Maybe I'll know the answer next time.
