Haven't the contestents learned anything? Desserts are the kiss of death.

Yes, it's like they've never watched the show.
Someone here asked why didn't they do a pasta? Those people get sent home too. The last two seasons, the chefs who made pasta salad got sent home.
I was surprised that the judges didn't say more about the Sherry being inappropriate for kids. However, in past seasons, when the chefs have kept the spirit of the challenge, it hasn't been a lifesaver. What I mean is, if the judges liked a dish but it wasn't within the rules of the challenge, they didn't use that to send the chef home. Although, they didn't like the dish in this case, so not sure if that makes sense either.
Yes, the chefs could have made a lowfat Croque Monseur (fancy grilled ham & cheese sandwich) and it would have been in keeping with the spirit of the challenge while they could have gotten fancy with it.
If you think grilled grilled ham & cheese can't go over with the judges, the 5 star, exclusive, fancy celebrity catering company I used to work for, whose clientelle is celebs and multi-billionaires, including Trump & the "Real Housewives of NYC" uber-rich crowd, all go crazy for it when they serve it as hors d'oeuvres. (Of course, our version wasn't lowfat. Made with exotic ham, lots of butter, some flavored oil, and homemade sourdough.) "Ah! Croque Monseur! I love these!" Maybe they aren't used to their private chefs making them at home?
Why is sherry chicken inappropriate for kids? There is no alcohol left in it and sherry is a nice flavor enhancer for kid or adult palates.
That being said, I think it was a weird choice considering their budget. Chicken thighs with a little adobo sprinkled on them and then baked would have stretched the budget much more.
Actually, if kids aren't used to the alcohol taste in their foods, they wouldn't have liked it.

People usually have to become
accustomed to the taste of alcohol based flavors in foods.
You said yourself it caused a budgeting problem. That was a main point the judges emphasized happening for ALL schools. Then you get ONE chef who uses up so much of the budget on alcohol for a kids dish, that the chef who got sent home didn't have the chocolate she wanted to build a decent dessert.
She should have fought more to get the chocolate and said, she'd only have 2 ingredients and couldn't make anything decent. But, Alcohol Girl should have not chosen sherry chicken. The winning teams each had well balanced menus in which one dish didn't overpower or hog their budgets.
I find any alcohol-y or wine tastes offensive and always have. There are MILLIONS of choices to give children, why pick a taste that is not one they're accustomed to?
Ding! Ding! Ding! We have a winner.
That same catering company I mentioned above made boeuf bourguignon. The guests were all moaning and sighing over it. It was made by an authentic French chef with expensive wines cognacs & whatever. When I had it for dinner later, I went, "EWWW!"

I'm sure it was tasted exquisite to those who would know, but I don't drink or use alcohol in my foods, other than a splash of white wines. To my palate the burgundy was way overpowering.

I thought that immediately when Alcohol Girl said she was making sherry chicken.
How did any chef think that a tomato was a vegetable?????
I still think of tomatoes as a vegetable.
A while back, the government tried to pass off ketchup in the school menu as a serving of vegetable.
I'm also allergic to most raw fruits (called Oral Allergy Syndrome.) That now explains why I'm allergic to raw tomatoes, too.
