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Were the charges dropped or she is out on bail?
Charges weren't dropped. Neither the judge nor the prosecution sought detention, so she is just out until the next hearing happens (May 15th).
From: https://www.msn.com/en-us/news/us/milwaukee-judge-hannah-dugan-charged-with-2-federal-felonies-in-ice-case/ar-AA1DCrnR
The article didn't explicitly state it, but she was probably released on her own recognizance. (In other words, she pinky-swore to come back for her trial).
Bail is just a tactic to compel the person to come back to court and face their charges by forcing them to pay a fee which they don't get back unless they show up. This lady is a judge. She is unlikely to disappear before her court date, because it would affect all the cases she is in charge of.