First, make a solution of 1/2 white vinegar and 1/2 water in a spray bottle. Spray the whole area. The smell won’t linger, it won’t hurt your carpet or walls, but it will be a smell that she doesn’t like.
Then I would buy a flat seagrass matte and lay it over the favorite carpet spot. You are covering it with an edible thing that will make the spot disappear, and if she chews it, it’s actually healthy for her. You want her to lose the fun of being in that area. Simultaneously you provide good toys for her to play with instead. If she is chewing and digging, you want to use chewing toys (willow balls are excellent) and diggy toys. So make a diggy box by shredding paper and putting it into a basket or cardboard box for her to jump into. Hide a small treat or two in it each time so she can dig until she finds the reward. It will be more worthwhile in her mind than a bad tasting carpet. Also, a yellow pages phone book is great for shredding because the ink is safe – it’s soy-based.