Lovemydd - your daughter sounds a lot like my oldest son was when he was younger. we even caught him practicing to crawl only when on his own - he stopped as soon as he saw us! (this was at 9 months of age)
When he was in pre school we had the same problems - he rarely showed what he could do, and his reports reflected that. Eventually we removed him from the school (gifted pre and primary school) because he was trying to hard to fit in with the other kids and it literally broke him!
If I can share a few things that will hopefully help you, esp since you like everything else about the school:
1. If your daughter is happy, leave it and resign yourself to the fact that the reports are worthless to you. If she is not happy take immediate action at any time!
2. Understand that most schools won't know how to coax out the perfectionistic secretly hidden talents.
3. If you see any signs of regression or trying to be like the other kids, please don't wait - take her out or make an alternative plan immediately
4. In your focus with your daughter forget the academics unless she instigates and work hard on emotional and life skills - like what you said about it being okay to not know everything.
5. Find challenges outside of school for your daughter - things she needs to work hard at for herself. This has helped immensely with my son in being able to confidently show what he can do, and accepting his mistakes when they do come.
I wish someone had told me these things - like your husband I was convinced I needed to show the school who my child was - it caused so many angst ridden moments with the teachers and admin staff. I wish I had done it differently - but that's hindsight for you I guess
