Hmm you are in a very difficult position Prinizzi I was a sw and tm mgr of a fostering and adoption team for 25 years before I retired. Then I worked independently for 5 years, mostly carrying out kinship care assessments. I met some wonderful people caring for their relatives, and thankfully mostly I was only too happy to recommend them to Panel, especially as the outcome for kinship placements are very good.
I have also been a Fostering Panel advisor for the LA that I worked for. In a case like this I would have a meeting with the panel manager and the ISW and see if we could find some middle ground. We would certainly not go ahead until we were clear about all the facts. As you quite rightly say there is little point in quoting sources if you do not include a bibliography at the end of the report. Without that these "sources" are meaningless. Can I ask how you know she has copied things from other court documents but altered the meaning to back up her assessment.
You say her main criticism seems to be around attachment. She clearly knows little about attachment theory if she says you have no attachment to your gr dghtr. Children have secure attachments to carers when their needs are met in a nurturing and loving way, insecure when their needs are not met, and ambivalent if sometimes their needs are met and not others. Sometimes children have attachment disorder if they are abused or severely neglected, but you can't have no attachment. Many sws misunderstand the attachment theory and she sounds like one of them.
The other thing is that an attchment between a child and parents/carers can only be observed by the interaction between the child and adult concerned. There is no other way of diagnosing attachment behaviour and you say the ISW has not seen you with your grdghtr for any length of time. To be honest it doesn't take long to observe a secure attachment - it can be seen by the way a child turns to the parent or carer, puts out her arms to be held, climbs on the parent's lap and asks for (even if non verbal) attention and that is given.
You won't have the option to ask that the ISW is not in the room for panel. Anyone who has carried out an assessment has to be part of the process. She can be asked questions by panel members. I honestly can't say how this process will go for you. Legally if the panel turn you down as kinship carers, the child should be removed, but given that this child has already been with you for so long illegally as you say (and this is very often the case) this hardly seems likely.
You have the support of the child's sw and the guardian so that is a good thing. It does seem from that that this ISW has got it wrong. I think your best move is to consult a solicitor (someone who is experienced in child care law because a lot of them aren't) and if you are turned down by the panel, the lawyer may be able to go to court to request an Interim Residence Order which would mean that the child could not be moved from you if the court were in your favour. I have known of a case like this before when the LA tried to move an aunt's 2 children for no real reason and the lawyer immediately put in an application for an Interim Residence Order and was sucessful.
You can google ROs, and Special Guardianship Orders (they are also routes to permanency) and most LAs will expect a kinship carer to apply for an SGO rather than a young child be in foster care. It's also cheaper for them because they don't have to pay fostering allowances and can close the case.
Finally IF this panel goes ahead, and I suspect it could be postponed, do try to keep calm and be factual rather than critical of the ISW. This will mean that you will show yourselves in a good light to panel. Actually the more I think about this the more I am wondering why the LA didn't ask you to apply for an SGO. which would be a far better way of achieving permanency. Mind they could have asked for an ISW to carry out the SGO assessment.
PM me if you need to and keep me posted. Happy to help further if I can.