This is not how photo licensing works. Photos don't magically become public domain because they've been published. There was never any license for it to be re-published and re-distributed in the context of test imagery.
The "turmoil" around the use of this image was never about legality, licensing or royalties. By agreeing to the contract, and by publishing the picture, the publisher and the model gave their "social consent" for everyone to see it. In a fit of moralism the model had a change of mind about the picture; but likely not about her economic gain.
