On the other hand, the government cannot prohibit the free exercise (of an establishment of religion), so if wearing the veil is a religious practice, the government can't prohibit the woman from wearing it.
On the other hand, the government ends up not able to take her photo for her license so she does without the license.
Nothing could be simpler than that. Gal wants to walk, she walks, eh! Must be part of Islam or something although there's nothing about veils in the Koran - just discussions of modesty (which meant something quite different at the time since women in Mecca supposedly went bare breasted in the days of the Prophet.)