Pain in the shoulder and arm with sensory loss points to a nerve root compression but thoracic outlet syndrome is possible. If the pain in the arm increases with overhead activity, thoracic outlet syndrome is more likely. If the pain decreases with overhead activity, radiculopathy is more likely.
Please see the section on this website “When to have neck surgery” to understand surgical indications more thoroughly. By the interpretation of the MRI findings, root compression of the C7 nerve (C6-7 level) is most likely the cause. If so, and no significant weakness is present, she can try epidural steroid injections and physical therapy. With severe pain and weakness, surgery (an ACDF-see website) might be indicated.
Dr. Corenman