She is still your qualifying child. I am guessing she is not the child of your fiancé. Therefore, he would not be able to claim the earned income tax credit or the child tax credit. It would best if you included her on your tax return as a dependent to get the additional $2,000 child tax credit.
Delete your child from TurboTax. It is not enough to just tell TT you are not claiming her.
The interview is confusing (it's designed for divorced parents, who are allowed to split the child). The second parent should not enter the child, at all.