From a former (college) teacher: Other than the stupid bonus question about his daughters, the teacher did nothing wrong. My advice would be to press the teacher about this, and insist he give your daughter the ten points. That would bring her test score up to 85 percent, which perhaps would be more acceptable.
If that fails, I would follow the earlier advice and stay out of it. When I was in 7th grade, I was put in an algebra class, which was normally a ninth grade class. The teacher pulled me out of it and told me I would do fine in algebra the next year. She was right.
If your daughter has to repeat a year, so be it. Sometimes that happens when sickness is a factor. And sometimes even when it isn’t.
You miss this part?:
He then says to me that she should have told him she wasn't ready for the test or asked him if she could "fix" it after the fact before report cards and maybe he could have "given" her some more points, like he did for other kids.
Bottom line is the teacher is corrupt. Pressing the teacher to change the grade by giving unearned points is wrong!
After having a child that missed lots class time because of leukemia my advice is:
Meet with the Principal and see what the guidelines are for a make up test.
And next time the kid misses school get with teachers for study materials.
If they test and it includes questions not covered in the study materials bring it to the teachers attention. Ask for those materials and a make up test.