The rule is if she is "challenging" for the ball. By just making the run she is "challenging" for the ball. You can literally see her trying to play the ball. It isn't the defender's fault that she gets to the ball before Lloyd can. As soon as Lloyd makes a play for the ball the ball is dead. In addition, VAR should never have to sort that one out. She was that offside. No need to keep the flag down there. VAR shouldn't have to sort that one out and the fact VAR failed to sort it out only calls the use of VAR into question all the more. The logic if the play unfolds any other way is that the defender should (a) have to know Lloyd is offside, and (b) to be completely safe would have to decide not to touch the ball and let Lloyd play it. And that is just ass backwards in every possible way.
errr, not exactly what Law 11 states about being guilty of offside when in an offside position
Offside offence
A player in an offside position at the moment the ball is played or touched
* by a team-mate is only penalised on becoming involved in active play by:
• interfering with play by playing or touching a ball passed or touched bya team-mate or• interfering with an opponent by:•preventing an opponent from playing or being able to play the ball by clearly obstructing the opponent’s line of vision or •challenging an opponent for the ball or*The first point of contact of the ‘play’ or ‘touch’ of the ball should be usedOffside98•clearly attempting to play a ball which is close when this action impacts on an opponent or •making an obvious action which clearly impacts on the ability of an opponent to play the ball or• gaining an advantage by playing the ball or interfering with an opponentwhen it has:•rebounded or been deflected off the goalpost, crossbar, match official or an opponent•been deliberately saved by any opponent