MisterGribs
Welcome back!!!
I think you hit the nail on the head.... restricted blood flow to the growth plate of the leg, causing the bone to stop growing, or at least retarding it's growth somewhat.
Now I'm no expert, but I do believe that the blood supply has probably been restored to some degree, or the bone would have died due to necrosis, causing the leg to die as well.
However, I think that when blood flow is restricted at some point of growth, the leg may not experience normal growth, causing it stay a bit shorter and possibly weak and lame to some extent for life.
That said, little birdie can still have a full and normal life, even with a weaker and shorter leg. One thing to watch for however, is the higher chance of this leg becoming caught or entangled in things around the cage, causing further injury.
People would probably undergo surgeries, bone grafts, and extensive therapy, but with birds that's obviously not an option.
Just my opinion

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If anyone can give her a good life, I know you can.