Because your return was rejected, you do not need to file an amendment, just "fix" the return. But, if the "fixed" return has your daughter or her child listed as a dependent, the return will be rejected because the IRS has already accepted an efiled return with those social security numbers. Instead, you will need to print and mail the tax return to the IRS.
You should consider which of you will claim a Head of Household (HOH) status, and who can be claimed as a dependent on your tax return. This Table 5 from IRS Publication 501 is a good way to check if your daughter and/or your grandchild can be claimed as a dependent on your tax return. If you can claim your daughter and your grandchild as dependents, and otherwise qualify for head of household, you can claim the Child Tax Credit or Credit for Other Dependents for them. And, doing so may increase your Earned Income Tax Credit (EIC/EITC)
If you decide to file HOH, your daughter will need to file an amended return as a single person with no dependents.
To help you decide the correct course, you can prepare your return, and compare it with what your daughter's amended tax return shows.
Click this link for instructions on how to file an amended return with TurboTax
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