IANAL, I doubt it will be withdrawn and it doesn't set legal precedent anyway.
When it's clearly poor quality, lawyers are unlikely to advise their clients along the lines argued.
We will have to wait until appeal(s) are submitted to see what grounds (Peggies lawyer wants to challenge on) and then what grounds are accepted as appealable.
It will be on points of law, they might also try for something wider.
It's entirely possible NHS Fife might decide to appeal too, whether to get clarity on the law or because they are just bonkers.