The game works in chapters, and Danica, like Oscar, was an inherent part of Klaus' chapter. She even doesn't have much ties to the universe of the game outside of Klaus himself. Now that he's death, she has narratively no use at all, even if somehow she survived. So bringing her back just to be able to put sex scenes would make little sense.
Also I seem to remember on my run her getting tentacle-stabbed while the MC made his escape because of the confusion of the attack and the goons trying to take him down. Might be missremembering but that's what's in my head about that part. And I didn't want to kill her.
I saw the same comment about her death some time ago and I double checked last update, no, she is not confirmed dead.
MC stabbed her close to/in the same spot (and he said so) , then proceeded to cut her eyes out to so he wont have to worry about leaving her alive again. Now, if I am not wrong, he also said "if you live" (as she got yet another bad stab), so WW really left it up in the air.
Either way no, she is not confirmed dead.
Edit: Ok, so I went ahead and triple checked and...yep, up in the air. At the end of the dialogue between the doctor and whoever that girl was, she said "3 corpses coming right up". That would mean she is dead, only...she says the same thing if you devour Danica too and, correct me if I am wrong, we eat our victims whole. That, to me, suggests that the 3 will be brought back later, and alive or eaten makes no difference to the story.
That, or WW made an opsie....or I went insane... yeah, that could be it.
And I just realized, she probably said corpses before seeing/bringing them so...yeah, I would not trust that line as a hint for Danica's death.
Man, I edited this 5 times in 5 mins...damn you WW for making me have to think.