This sounds like they wanted her to sign away the rights to her likeness and voice to be involved in the reboot. Big time actors have the ability to negotiate AI in their contracts. Everyone else? Well...
Original BLAIR WITCH PROJECT star Heather Donahue/Rei Hance has explained why she's not part of the reboot team.
"I was offered an agreement that, for me personally, raised difficult long-term questions about rights, future technological use of identity and voice, the ability to speak freely, and compensation. Ultimately, it just wasn’t something I felt comfortable signing.
"I genuinely wish everyone involved well. But preserving my autonomy mattered more to me."