I'd recommend the Facebook group American Expatriates, there are a lot of 'Accidental Americans' (either born there and left as small children or were given citizenship through their parents) there who can talk you through the pros and cons of keeping US citizenship and steps if your daughter chooses to renounce. Their main advice is likely to be for her to avoid entering the US tax system and getting professional advice for things like investment if she chooses to remain a US citizen.
The IRS has had a decreasing budget to tracking down Americans abroad. I've read something like the compliance rate for us is something like 2%. They, and the rest of the US government, don't really keep track unless information is provided to them (and even then only in a very specific way).
The main issue is more banking, financial products, and employment because of the fear of the growing and ever changing US requirements put on businesses who deal with us (including our own). Due to the US throwing its weight around and so many countries rolling over, it's used extraterritorial powers to threaten banks if they don't pass on US citizen details. That's why they now ask if you're a "US person" on forms. Some banks have stopped wanting to deal with us, we're denied certain products, most investment companies don't want to touch us (even US companies, such as Vanguard and [[https://help.wealthsimple.com/hc/en-gb/articles/115013691347-Can-I-open-a-Wealthsimple-UK-account-as-a-US-Citizen- Wealthsimple won't touch Americans abroad), some pension companies don't want to know either, and it can be issue in a job that involving accounts. That's before getting into the recent weight GILTI has put on for self-employment or - while I haven't heard it happening in the UK, in several European and other countries, US citizens are having their accounts closed and insurance policies canceled as banks are terrified of having to deal with US reporting requirements. There are people who renounced just to keep the roof over their head or their business running.
I haven't yet, not sure if I will, but it's just as much if not for some people more a risk than it is a benefit or a possibility. As I said, I'd recommend getting more in-depth advice from a group dedicated to helping people in this situation as they can dig more into those.
Also, any children she has would, at the moment, be US citizens through her as well.
Not true "For birth on or after November 14, 1986, the U.S. citizen parent must have been physically present in the United States or one of its outlying possessions for five years prior to the person’s birth, at least two of which were after the age of 14." It's quite possible, as in my case where I left at 17, to only be able to pass on citizenship to some of one's kids and a lot of US citizens abroad like me are choosing not to. Once a child hits 18, it's pretty difficult for them (the child or the IRS) to try to make a claim as they have to prove both of those points.