Unfortunately, it does not appear that the phone was reset / erased correctly. Here is the correct procedure:
What to do before you sell, give away, or trade in your iPhone or iPad - Apple Support
(Hint.....you would not see the message that you are seeing now if the phone was reset / erased correctly).
If the phone was reset and erased correctly, the phone would look just like this:

So, you may need have your daughter follow the instructions in the link above, which will require that she enter her Apple ID and Password to reset / unlock the phone.