I think the instructions are asking you to report the money so that YOU can get the AOTC/LLC. A parent who has a dependent student can get a tax credit for QEE paid. For the AOTC, if you pay $4000 in QEE, you may get a $2500 credit. Turbo tax asks for the 1098 amount but then asks “is that correct” and you can say NO, not correct and fill in the correct amounts.
If your daughter had taxable scholarships, she’d report that on HER return.
There may be qualified expenses NOT reported on the 1098-T, such as books and supplies or extra scholarships received. You also have to decide which tax year you want to include the items in. I kept all payments and scholarships in the tax year for the semester PAID, not reported (so the spring scholarships were in the next tax year, even though the scholarships were awarded and posted in Dec for the spring) and the 1098 was NEVER correct for the 10 semesters and 5 tax years my kids were in school.
You can also report some of the scholarships as taxable to your daughter and then count that amount toward the AOTC credits for your return. Since the new standard deduction is ~$12600 (I think that’s it for this coming year), your daughter might be able to make the entire $4000 income to her and not have to pay taxes, but make you eligible for the AOTC - it really depends on her other income.