Hi whoneeds. Please do not worry.
I am a teacher and this week, I administered the phonics screen to all our Year 1s and the Year 2s who did not meet the benchmark of 32 out of 40 last year. I also administered last year's screen.
I will not bore you with my views on this particular assessment for such young children. But I have a few points to add.
Firstly, scoring 29 is fine. Maybe your dd confused a couple of the digraphs (such as or, ar, oy, oi). No problem. Her teacher can easily address any confusions over the next few weeks.
Your daughter will take the screen again in Year 2 in all likelihood. Again no problem, as she will meet the benchmark next year.
There is also evidence that higher ability readers do sometimes score slightly lower because they automatically search for meaning. For example, "osk" being read as "ask" which is scored as incorrect.
The school should simply continue teaching phonics into Year 2, as they would be doing anyway. This is likely to be Phase 5 phonics (or equivalent if your DDs school follow a different program).
Keep reading with your daughter as often as you can. As a parent as well as a teacher, I would only be concerned if a child was scoring below 15 in Year 1 (or didn't meet the 32 benchmark when reassessed in Year 2 despite 3 years of phonics teaching).
Enjoy reading with your dd.