A lot of babies go through a strange phase. has she been like this long?
If she get upset when someone holds her I would take her back, comfort her and let her settle.
Some babies just prefer to be with their main carers, it is not anything you are doing wrong, it is just how she is.
What does your friend suggest? Letting her scream in terror? She trusts you and her Dad, why break that trust just so someone else gets to hold he?