again.. both has pros and cons I'm afraid.
Yes, a wider trackwidth reduces the chance of having it tip over in uneven terrain
(serpentining up a hill

)
it also helps in corners (although leaning will still be required)
The downside is.. live axles (especially with wide wheels) are notorious for understeering.
they simply only really like to go straight.
So that'd affect the steering again.
Frankly, I cannot tell you what to do really, that's mainly a question of your daughters skills and talent.
(How good of a rider is she today, and how fast can she adapt to unknown situations off road?)
Something I wouldn't dare to judge... and forgive me... wouldn't believe in any
parental judgement (own kids are always the smartest, brightest, quickest and most talented.. they have to be!)
So yeah, tough to give good advice
A good rule of thumb would be...
if you think it'd be fun for you, it's likely a tad too dangerous for a kid.
If the kid's mom is fine with the kid riding it w/o supervision in the backyard..
step up and add some more fun

Sweet spot would be a slightly concerned look in mom's face and a slightly bored one in dad's

(or the other way around.. I know.. but I've seen that!)
Whatever you do, do not go crazy on anything, raise if you like (but gently) an inch, maybe two should do in most cases.. keep in mind this atv is structurally NOT made for off road.. cheapest possible frame with cheapest possible tubing... a heavy bump and it might twist.
If you think widening it to compensate for raised center of gravity.. do so, but again gently..
four inches maybe just enough to compensate for the added height to keep the steering as close to what it is now as possible.
What you're messing with is a sophisticated toy rather than a sportsequipment, treat it that way. it's neither meant to go fast nor to go rough... it's a pavement (maybe lawn) walking speed 'toy'
Do not expect you could convert it to something able to keep up with a Honda or Yamaha ATV of comparable size (after you raising and widening it), the difference in price is justified I'm afraid
So yeah, be gentle, think twice and when in doubt do what's safer for your kids, not what's more fun for you; and when they're grown out of it rather buy the next bigger one from CL.
'sid
again: just MHO