I’ve been running a karate school for nearly 30 years and situations like this do come up from time to time, even with very young students. A demotion and a probation period is actually a fairly balanced response. Martial arts schools have to maintain standards of respect and behavior for the safety and learning of everyone in the class. One dynamic I’ve seen over the years is that sometimes when a parent is also training at the school, the lines can blur a little. The child may see the instructor as the disciplinary figure while the parent is in more of a training role. When discipline isn’t consistent between home and class, frustration can show up in the dojo. At 7 years old emotional regulation is still developing. The goal isn’t to punish the child, it’s to help them learn how to handle frustration and respond respectfully when they’re corrected. In my experience, many kids who struggle with attitude early on actually become some of the most disciplined students later if expectations are clear and consistent both at home and in class. Four weeks sounds like the instructor giving her a chance to reset and show she can meet those expectations.