My NLD son was extreme with this difficulty.
I didn't know much about CM when we dealt with this, but I did notice
some things that you might watch for:
1) My son wouldn't even remember names in the Bible, except for Jesus.
I mean, he couldn't keep Adam and Noah and Joshua separate from Peter.
He had no clue. He couldn't even remember the name of 'that guy who
killed the giant'!
2) BUT, in his case, he did KNOW the stories without the names.
3) Now that he is older, he 'knows' many more names. He isn't as handy
with names as neurologically typical children, perhaps, but he might know
more names than 'most' (not all) PS students simply because of the
literary approach. Otherwise, I think he'd still struggle.
4) He always has, and still does remember names from longer texts about
a given individual, such as Heidi, than short stories such as AIS, which
just makes sense........ More repetition. Which helps us know when to
do things that reinforce names that are important to us.
5) When we review his timeline OFTEN ENOUGH, the names become a part of
his knowledge. We did a verbal timeline in the past. And that did work.
When he watched a PBS special about Greece, he knew every name they
mentioned. He felt like he was getting to see old friends again!
However, I'd use the Book of the Centuries for that review now.
6) The suggestions to write the names, practice saying the names, and
hand out paper doll(s)/a picture of the character and maps, prior to the
reading for students who struggle with this should help too.
7) If there are 'two sides' in a story, then I'd place pictures opposite
each other during the reading. That, along with shorter sections for
narration to indicate where she is getting lost.......
So, if you help your daughter with names (and sides in a conflict), and
that reduces frustration enough for narrations to begin to flow, then I'd
continue with AO Yr-1 readings. If that didn't reduce tension, then
she's simply not ready. And that's okay.
If you think she has the 'habit of frustration' imbedded deeply enough,
then I'd stop for a little while before trying any changes. For example,
I've allowed my 2nd son to have the 'habit of frustration' briefly with
his violin practice from time to time, and then I have to stop and make
things better for him by backing up. Then, my 16 yo teaches him a lesson
without the gentle approach, and brings back the 'habit of frustration',
which has to be worked back out again, because he has a strong tendency
to fear and anxiety. In his case, I have to watch very closely for the
'habit of frustration'.
Perhaps you've already tried these things various ideas.
If you haven't, and you try them now, and they work, it is an issue of
'names' that is stopping narrations that would otherwise flow. The next
issue is longer term auditory memory, and that is aided by the same
process. If all of that works so that she retains story 'content'
relatively well (with brief review via the timeline), then I'd help
build the student's auditory memory/processing skills (perhaps seeking
professional help, and perhaps not---but in my case, I wish I had)
alongside the forward motion in historical studies.