Its saying my daughter does not qualify for the American Opportunity Credit, but I do not see why? Filing single, not claimed, full time student

It sounds like you're working on her return, not yours.  That is, she is claiming the AOC on her return as opposed  to you claiming the AOC, on your return, because she is your dependent.

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

If she is eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC