I don't know what the Board of Nursing rules and regs are in your state, but I have a tough time imagining that surveyors would make a blanket recommendation that everyone employed by a bad facility should lose their license/certification. I suspect that this threat may have just been a story told to the employees by the management at your daughter's facility to try and keep them from blowing the whistle on the poor conditions there. Just my opinion, of course, but I've worked in places like that and seen the same sort of behavior. It's a shame, but I wouldn't put it past some of the administrators and nurse managers I've worked for....they'll do anything to keep THEIR phoney-baloney jobs and throw the staff under the bus.
Best wishes to your daughter. I hope she finds a new job FAST.