Her idea that she can just walk back in is completely unrealistic.
Invite her to pitch her idea to you as a sounding board. Respond to the idea she presents and ask tough questions, including how she will be able to handle the physical challenges of the job. Then encourage her to think of what she has the strength and capability to do. Is there another role at her old job that might be a better match right now?
Since we’ve started, some of us have gotten married and had babies, some have gotten divorced — the whole nine. Due to life circumstances, people miss the trip occasionally, but mostly we carve out time to get together. Tell your friends you will not be joining them this year. Tell them before you have the stress of trying to get back deposits and disentangle from contracts. And yes, explain that finances are tight this year as you are currently unemployed. You hope to join them again next year.