Everybody cheats, administration does not care, what to do?
Unfortunately, in this kind of situation, it might be best for your friend to look around for a different educational institution.  It is all very well to say &quot;just stay strong and don't cheat&quot;, and of course she definitely should not cheat, but it is still demoralising to work in an environment that systematically incentivises bad behaviour and punishes good behaviour.  Particularly given that her relative standing and future opportunities are being harmed by being compared to a substantial number of students who cheat, it would be good to look around for other places she can go.
Now, if there is no escape from this school (i.e., if your friend has no opportunity to go somewhere else) then I would suggest she try to set herself apart from the other students by doing some kind of extra-curricular project that cannot be faked.  If she can use her coursework knowledge to create some valuable project that she can exhibit to show her skills (e.g., writing a good paper on a topic, building a working go-cart, creating a diorama of how a smelting plant works, etc.) then she will have something to show recruiters for later schools so that she can demonstrate her knowledge and ability.