I had a similar (though not quite as bad) situation with my second semester Freshman Organic Chemistry professor. Note that this was 2nd semester, so everyone in it had already gotten through the first half of the course (with an awesome teacher). The replacement professor had just learned he'd lost his tenure at the school and, since he was a foreign national, would likely have to be heading back home. He basically didn't care about us at all. The difference between your DD's experience and mine was that our guy DID grade on a curve. I remember getting an early exam back with 26 out of 114 points and realizing, given the class average, that it was a B grade and I wasn't doing so bad. I had at least 2 friends drop the class after that test.
Should she drop the class. Almost certainly. Should she talk to her advisor. Yes. Sometimes a school will be willing to let an entire class fail, but often they are not. Regardless, they will want to reprimand their teacher if and when they find out about what he's doing to their paying students.
Your teacher wasn't preparing you for anything at all. I think you wrote the key word here - paying. We will lose money when she drops this class and I"m not even sure how it may affect her scholarships. I don't want her to be handed a grade, but of course, I"m hoping for a fighting chance.