OK, I've done some more thinking.
First of all, if you were setting up Screen Time for your child for the first time, I would refer you here, with focus on the "Set Content & Privacy Restrictions" section.
Use parental controls on your child's iPhone, iPad, and iPod touch - Apple Support
Also the "Use Screen Time with your Family" section here may well be pertinent:
Use Screen Time on your iPhone, iPad, or iPod touch - Apple Support
You mention you have turned off Screen Time on both iPhones. But perhaps there's something corrupt about the "Family Sharing" relationship, although admittedly you show a screenshot above that correctly shows you as the organizer and your daughter as a family member.
Does your daughter's iPhone depict this relationship correctly as well?
As you may know, a child under age 13, once enrolled in Family Sharing, must remain in a Family Sharing relationship. So perhaps your daughter was previously in some other "Family"? Or perhaps you tried to cancel the Family Sharing to investigate this issue?