Another tax question (1099-MISC)

Ha! Indeed.

You seem to be suggesting that it's more nuanced than it appears to me. If the LLC pays her for consulting services, she renders those services for fee - and the LLC deducts the payments as a business expense (as paid to a third-party non-employee for services) ... what would be the scenario where that isn't non-employee income in box 7 of the 1099 and not subject to SE tax for her?

Seems pretty clear to me, but I'm no tax pro.

If it is determined that she is not actually self employed but rather conducting a hobby the income would not be subject to self employment tax, even if reported as nonemployee compensation for example.