Add retired mother-in-law to our family sharing?

in iCloud
Hi, my mother-in-law has had her own Apple ID and bought her own apps up until this point. She has been retired for some time. My wife and I subscribe to Apple One and were wondering if it was possible to add my mother-in-law to our family, mainly so that she can enjoy Apple Music. If it is possible, what happens to apps she's already bought?

Also, w
hen I went to invite my mother-in-law to our family account, the only option was to invite her as a 'child' (I'm assuming because my wife and I are already listed as 'parents') - will this place any restrictions on her account if she's under our account as a 'child'?
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