Yes
>" If you're posting anything you did not create yourself or do not own the rights to, you agree that you are responsible for any Content you post; that you will only submit Content that you have the right to post; and that you will fully comply with any third-party licenses relating to Content you post."

That is the part of the TOS she is violating.
 The author of that photograph could easily request a DMCA so  the post in question to be taken down by Steemit since the user has no permission by the author of the photograph to monetize derivative works. That would be a big problem from Steemit.