Unkind behaviour, DD age 7

[MummaBeartoOne]

My DD is 7 and an only child. We have just returned from a mini break with friends and during one of the days out we visited a pub with an outdoor play area. As we were leaving, another mum approached me to ask if my daughter was with me. She said her twin boys got into a fight on the play area and DD apparently encouraged this by shouting 'fight, flight, fight'
I was absolutely mortified. I asked DD if it was true, and she confirmed it was. She was the only one to say anything, as I suspected she may have been led by the older kids we were holidaying with. I might add that we could see the park from where we were sat, but could only see tops of her head inside the play equipment.
I spoke to her in the car afterwards and asked why she'd said it. That we've raised her to be kind and couldn't understand why she wanted to encourage it. I restricted her playing time afterwards and told her she couldn't visit the on site arcade with the older kids (without any adults) as she couldn't be trusted. I thought this was a fair punishment, but DH completely undermined me and allowed her to go.
Completely long & rambling post, thanks for reading if you're still with me 😂
My questions are; what would you have done? Have you experienced similar behaviour? I feel I want to talk to her again about it now that we're home but don't know how to approach and what to say...suggestions welcome.
Please be kind in your responses....this mama already feels like she's failed 😞

I think you're making far too much of this. She comes from a home where rough behaviour doesn't happen and better traits are encouraged. Then she met these children and was swept up with the excitement of the twins scrapping . Perhaps she's heard the call to fight at school or wherever.
It would have been enough to show disapproval after but disapproval was followed by restricting her playtime, not allowing her to go the arcade, and the nastiest punishment of all, you told her she cannot be trusted.
This way over the top for a child who hasn't sinned much on her little life. She was copying someone else I.expect and a rather silly woman reported her to you. She has twin boys and she held your girl responsible for a scrap?
I agree totally with your husband on this.