I saw the picture on the news. Yes, this story made the local news.
It's not that bad. The other children are wearing caps and gowns while she is wearing regular clothes. Not a big deal! I agree that they are crazy.
Most public schools in NYC have a number, and some are also named after a person or the neighborhood. Some grammar schools end in 5th or 6th grade so they graduate and go to Junior HS or Intermediate School.