Does the pass holder need to be present for friend to redeem Bring a Friend for free ticket ?

No

Nope! 😁

In think the rules say that but my friend tried it without her pass holder and was okay.

You are required to be present for your friend to enter the park. The tickets are tied to your pass to allow them in. If you have a entrance employee who doesn't care you might slip through. I brought my friend and his family (three of the five family members were our free tickets) so they checked my family's passes and the free tickets.