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I would put a blade on the brush cutter and bring it down before collecting the bulk then mowing
Without seeing the area, I think I would strim/rake/strim/rake and maybe strim again, so there is virtually no foliage left. Any 'hummocks' can be chipped off and levelled with a spade and re-seeded, so that there will be no mower damage later.
Regarding 'cutting your losses' surely that is a decision for your customer to make. With a bit of over-seeding, you may be surprised how well the lawn will come round, although there could be a weird and wonderful grass mix in the lawn. I would certainly have a price prepared before broaching the subject of a complete cultivate and re-lay.
Done my fair share of those in my first year. Wont touch those anymore at all. I leave those for you young whipper snappers. ;-)
:-)