Who is dbtyz and where did they get this information? From a preliminary accident investigation or are they just saying what they think happen from the number of unofficial reports out there. One part of what they are saying doesn’t really sound right, hough it could be and that is that the instructor told the female pilot a number of times to correct her altitude and she didn’t. In any flight environment, but especially in the one they were in, it the pilot doesn’t follow the instructors commands, the instructor takes the airplane away and corrects the flight condition. So, it makes me wonder why that didn’t happen.
The pilot ignored the altitude warning because the altimeter said 200 feet (right at their max allowed height), which would have been fine. The altimeter wasn’t set correctly, they were actually at about 300 feet.
“The instructor” you said. Was this a formal trainee-instructor relationship? I don’t get that impression; rather that the right seat happened to have hours performing as an instructor.
So that would be an additional point of failure. Perhaps some investigation should be conducted on everybody involved, including the co-pilot.