They seem worried about having used Medicaid/public benefits and how this will affect the citizenship case.
From healthcare.gov:
Medicaid, CHIP, & "public charge" status
Applying for or getting Medicaid or CHIP benefits, or getting savings for Marketplace health coverage doesn't make you a "public charge". This means it won’t affect your chances of becoming a Lawful Permanent Resident or U.S. citizen.
https://www.healthcare.gov/immigrants/lawfully-present-immigrants/
Unclear if they were eligible in the first place but since it went through and she got consultations I assume everything is ok? Would like to hear from someone with more experience in this topic.
From Medicaid.gov:
To be eligible for Medicaid, individuals must also meet certain non-financial eligibility criteria. Medicaid beneficiaries generally must be residents of the state in which they are receiving Medicaid. They must be either citizens of the United States or certain qualified non-citizens, such as lawful permanent residents. In addition, some eligibility groups are limited by age, or by pregnancy or parenting status.
https://www.medicaid.gov/medicaid/eligibility/index.html