M.L.
Your Dr was an idiot! If there are flakes on the bald spot, especially if they glow orange or green under an ultraviolet light than she DID still have it and the hair will not grow back if left untreated, olive oil and brushing isn't treating... that's for things like cradle cap. If she still has scales, she still has ringworm (which is a fungus). Ringworm on the scalp will cause permanent hairloss unless your child is prescribed a round of ORAL antibiotics, my 4 year old son was on Griseofulvin 125 mg, 1 1/2 teaspoon every 24 hours.
Our boys actually had to take 2 rounds of their medicine. They had ringworm all over their body, over 20 spots (we had gotten a new kitten) and they had several ringworm bald patches in their hair. The ones on the body cleared up in a few weeks, the ones on the scalp took almost 3 1/2 months... that is with the oral prescription antibiotics. Anti-fungal creams DO NOT WORK on scalp ringworm, they work perfectly fine on skin ringworm. I know this from dealing with it with my boys, from doing plenty of research and I am also a hairstylist. It has been such a long time with your daughter, it's a good chance the hair loss is permanent. Because we vigorously treated our boys, their hair grew back perfectly after a few months.