That’s right that YOU meet all of the requirements but, neither your daughter, nor her mother have been residents. Too many students have one parent living in the states, and the other lives abroad which impacts everyone who lives, works and studies in California. Your daughter doesn’t have a California ID? California license? Attends high school in California? Voter registrations? You’ve been living in California, but you/your wife have been supporting another country’s industry while resident students have been attending local high schools and living in California. It’s not the same.
They’ve updated and tried to streamline the residency requirements so that every student is on the same page. Note that the policy’s title page says “Revised, March 22, 2023”.