Schengen visa: how to avoid the travel ban and fine?

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Your wife's first stay was 54 days: 14 days in April, 31 days in May, and 9 days in June. The date of entry and the date of exit are both counted. Similarly, her second stay has been 57 days, for a total of 111 days.

Most jurisdictions require an application to extend one's stay to be submitted before the authorized stay expires (so, in your wife's case, she should have submitted it on or before August 2nd). But Schengen short-stay visas can generally be extended only in cases of "force majeure or humanitarian reasons" preventing departure (Article 33 of the Schengen Visa Code), so she likely does not have any way to extend her stay.

What should I do?

Talk to an immigration lawyer.

What is the best airport to exit from? Cologne-Bonn - Düsseldorf in Germany, or from Belgium or Spain or another country?

The penalties your wife faces do depend on which country she leaves from, but I do not know what penalties each country prescribes, nor do I know an easy way of finding out.

Or should I try to change the visa type here in germany ?

In Germany, citizens of a small number of countries can apply for a residence permit without first getting a long-stay visa from the consulate in their place of residence. The countries in question are all on the visa-free list, so it is safe to say that your wife does not qualify for that.

Will she will get a ban or fine when she leaves the Schengen area?

It's quite possible. A fine is more likely than a ban.

If she applies for a new Schengen or study visa later, will it be OK?

A history of violating visa terms is generally a significant negative factor in future visa applications, so there is a good chance that future visa applications will be denied. Her best hope of coming out of this favorably is to seek legal advice.

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