I grew up with CPS being reported against my family on multiple occasions. At one point we had 7 CPS reports against us. At the end, CPS sent two people -- one being a supervisor to make sure nothing was missed -- and two sherrifs with a wagon to take away the kids if anything untoward was found. The supervisor determined nothing was wrong and that the CPS reports were malicious and put a note on our file and address stating that further reports need to go that specific supervisor.

We didn't have any trouble after that. But it was very very stressful.

If she has boundary issues, she may not stop until she suffers from a firm response. It may also be why she has the strange hobby of approaching and interrogating someone else's children (she may feel 'safer' with them since a polite kid rarely sent her to mind own business).