Totally agree with polarbear. You don't yet know what is the problem you are trying to fix, so it's impossible to judge whether the solution is a good one. You are still stuck with the same fundamental question: is she not progressing simply because she is young and not ready, or because there is a fundamental processing deficit of some kind getting in the way?

If the former, then time is all she needs, and repeating an easy solution. But you really need to know if time is, in fact, what she needs. If she is instead 2E, no amount of time spent doing "more of the same" is going to help, so repeating would only exacerbate the problem. If 2E, she will need *different* - therapy, remediation, different kinds of instruction and accommodations, whatever her situation calls for.

Your daughter is young enough that diagnosis is trickier, but there are nonetheless clear indications for dyslexia at that age, and an experienced psych can assess them. It also sounds like your DD still has question marks around both auditory and visual processing; you need to find specialists you trust, so you can get diagnosis you have confidence in and follow-through on any needed therapy or accommodations. Both auditory and visual processing can cause major problems with learning, and both have symptoms that overlap with dyslexia. I have lived through untreated disabilities, which just keep building up anxiety and fear in the classroom. The longer they're left, the harder it is to get a child back to the point where they feel safe, trusting and confident, and are willing and able to learn.