I did it! I finally got in to revise it and put in the scholarship amount and it kept giving me the same error but I was able to just keep clicking next and finally it took it. Now daughter #1’s EFC is just slightly lower than #2’s - which makes sense because her actual income is slightly less. Thank you so much for your help. Thank you for confirming that I’m not crazy and I should have gone with my first extinct (even though it wouldn’t let me AND both FAFSA experts I talked to were wrong). 
Now I can move on with my life. Thanks!