No. BCF affects damage dealt. Damage modifiers affect the damage value. So if you do a CLOSE object action, you can use BCF, since you made a CLOSE, but the modifier from the object would be wasted, because you wouldn't use your damage value to deal damage, but the roll of BCF instead.

Also, with CCE and Penance, she could use it and put both into damage. Modifying damage doesn't mean it isn't "normal damage." But again, it would be a waste since you would then use the BCF roll rather than your damage value.

EDIT: Read Burleigh's post again and I don't think he meant to imply modifying damage isn't normal damage any longer. I was just confused since it was underlined. I think he agrees with what I put here. Hopefully this post clarifies rather than confusing.

“Replace then Modify” only applies to combat values. B/C/F “replaces” normal damage, not the characters damage value. It’s “instead of normal damage”, not “instead of the characters damage value”.

I really need to not answer questions about rules when i am sleepy.....
Now that i am fully awake i even recall saying the same thing you guys said to a player a few days ago....

She has battle fury so you’ll have to outwit that first before you mind control.