I hope this truly is the end of this saga and she has her male fixed. She apparently doesn't care about this pup, just about it's "purebred" status and if she gets her money back from this loser BYB she'll just go buy another pup and have the same stupid ideas as before. I would still talk to the vet and see if they will convice her to have the male neutered for his own health. You could also just give her some info about the benefits of neutering and maybe find a low cost place to have it done cause if she has to pay $100 or more for a neuter, it ain't gonna happen.

Tell her it costs a lot of money to raise a healthy litter of pups and even more money to raise a disastrous litter and she won't make a profit.