Having suffered from seizures in the form of absences myself, I can only sympathise. These were very distressing for me and the after-effects did present to others as emotional or psychological disturbance.
Also, stress can precipitate seizures, and of course, the perception of what is stressful is entirely individual. Not getting enough rest might well be making the situation worse.
I'm glad that you're getting fresh eyes on the situation.
As Cognitive Behavioural Therapy has been mentioned, I'd like to suggest that this might be a useful tool. I've had it myself for an unrelated issue, and it struck me that it would be helpful for anyone having to live with a long-term medical condition. It's by no means any kind of cure, but if given by someone who is aware of her health issues, it could help your daughter lower her stress levels and have a better quality of life around the limitations currently forced on her by the epilepsy.