The moment Dan was pushed back by Michel, he finally took a proper stance. He had concluded that attacking Alex wont work if he doesn't deal with Carlo and Michel first. Michel seeing that Dan was about to get serious, decided to also get serious.
She removed her leather jacket revealing the weapons hidden underneath. The weapons she had were different kinds of knives, different kinds of handguns, she even had a tonfa. Michel then discarded the handguns since those would only slow her down, in this kind of fight inside such a close space. She also might hit one of the children accidentally. So she kept only the weapons that could be used in a melee. Seeing that most projectile weapons don't really work on Dan.