Hello & welcome, I am Dr. B, a licensed veterinarian and I would like to help you today.
Now luxation of the patella (which just means that the knee cap pops out of its groove at the knee joint) is a common condition for our small breed dogs. It tends to appear with a range of severity. Mild or Grade 1 cases (which sounds to be the case with Sukhi) will luxate on rare occasion (or exam) but be without symptoms. Where more severe cases (Grade 2 with lameness or Grade 3-4) can pop that knee cap out to the point it is rarely in the groove causing lameness, pain, and preventing the dog from bending their knee.
In regards ***** ***** to operate, we tend to do based off the grade of the luxation and the dog's clinical signs. Grade 1's + Grade 2's without symptoms often don't need surgery. Those worse then that often do. Of course, we do have to appreciate that over time it is possible for the luxation worsen and surgery may be indicated in the future. So, if she has been diagnosed with this condition, we do want to monitor for any issue over her lifetime.
With this all in mind, if Sukhi isn't lame, painful, seen shaking this leg out, bunny hopping (signs that a dog is popping their knee cap back in), and is perhaps a Grade 1-2; then surgery is not absolutely necessary at this stage. I suspect if your friend isn't planning to renew her insurance (which it is advisable to do so in case this does ever worsen as some will) her vet is just trying to head off any future issues. But of course, one can choose to monitor the situation if she is comfortable in herself with this leg. That said, if Sukhi worsened at any stage of her life and surgery was needed, then surgery could be done down the line.
Overall, if she is without symptoms of the condition, then operating may not be absolutely necessary at this point. Still because this issue has been recognized and could potentially cause issue later in life, it would be prudent to make sure your friend continued her insurance (be aware if she switches company now this may be excluded from cover as a pre-existing condition) just in case Sukhi did need surgery in the future. That way she doesn't need to rush into surgery now, but would be able to have it done if Sukhi ever needed it.
I hope this information is helpful.
If you need any additional information, do not hesitate to ask!
All the best,