The Prison Counselor was a survivor in the Prison before her demise at the hands of the Banoi Butcher.
She was likely the behavior councilor at the Prison where she would try and cure people of their addictions and violent tendencies. It can be assumed that she operated out of her office at the Prison.
During the prison outbreak she hid in her office with a guard and prisoners but the Banoi Butcher also escaped and killed her personal guard and the other prisoners.
She met her untimely end at the hands of the Banoi Butcher when he escaped during the outbreak on the Prison. She was hacked up, her body mutilated and eaten by the Butcher, which is how her remains are found by the Heroes during the side quest Banoi Butcher. Her death is avenged when the heroes attack and subsequently kill the Banoi Butcher.