The line between dreams and reality is thin.
In the story's both the characters are in trouble because they were rude and the wall and palace both did something out of the ordinary.
like it might be talking about/saying that this is a persons last chance
The word prodigy applies to Waverly due to her being especially good at chess, or whatever it was she does. Her mother's point of view on prodigy is being the best she can be, and the term applies to her mother by not being quite as smart as her daughter.