This sounds like a load of nonsense. I am not aware of any such use of location data in ticket buying apps, beyond a list of "stations near me" etc.
Was there another TPE service that would have enabled your daughter to reach her destination within an hour? If not, TPE were obliged to reroute your daughter 'at the earliest opportunity' which may well have meant the LNER service which she boarded. In that case, she should not have had to buy any additional ticket.
Even if there was another TPE service within an hour, there is currently
general ticket acceptance in place on LNER, between York and Edinburgh, where TPE services are cancelled. This has been the case since the end of last year.