Which LMB intervention did they recommend? LiPS or Seeing Stars?
DS6 is in a very similar situation as your daughter. He doesn't intuit reading like he does math, and was about at grade level in K. The tester worried about dyslexia at that point, but we never got a formal diagnosis and never went through with LiPS.
You might look into All About Spelling, which I think of as Orton Gillingham Lite. It clears up a lot of confusion for a kid that needs the explicit instruction with as much or as little repetition as necessary.
