It sounds like you are saying that your daughter wanted to do something that her friends were doing, but wasn't up to the task, and as a result saw it as a chore to be completed. If that's wrong, I apologize, but it's what I am getting from your original post & the SWH.
I remember when I was growing up, in 2nd grade, I had an instructor that assigned us reading challenges 2x each year. We -had- to read 3 books, & do some type of report/project on them to turn in. -If- we read 33 books, also completing the project, we got a plaque award at her end of semester conference where our parents were invited.
She had a different theme for each challenge. For example, one I remember had a giant hen (teacher) surrounded by 33 eggs (books). Each student was a chick, & as we completed each book & project, our chick moved up an egg. It was all posted on a wall for everyone to see & be challenged by each other.
I had this teacher for 3 years. The first year, I only read the 3 required books. But oh man, when I saw the other kids getting their awards, I was jealous! I got 5 awards after that (one that year & both the following two years).
It sparked my desire to compete, & my participation in the challenge sparked my imagination through the books I read. I am now an avid bookworm, to the max. (Seriously, I read no less than 4 books at a time - 1 in the bedroom, bathroom, living room & car so I am never w/o)
It sounds like your daughter got caught up in a bit of a participatory/competitive excitement, & wanted to read the books along with her friends. But something is blocking her from getting true enjoyment out of it. I know the project that we had to do for each book initiated conversation with my parents about the book I read, as they helped me complete the project. I also had to present it to the class & explain how it represented the book I read.
Perhaps while her friends are also reading the books, they are not all talking as a group about what they are reading. Or her friends are ahead of her, and so she is not as included in the discussions. Maybe she is a bit over-faced by the context & language in the books. Fantasy can be a great genre to read, but there is "made up" language used that can be difficult to a beginning reader.
Have you/your husband actually read the books? I know you state you are not a fan, but if you read them & could ask your daughter about what part she is reading, & engage her in conversation about that, it might encourage her to continue, & develop her enthusiasm for reading.
Forced reading is a chore, & when the book is not interesting, or is difficult to understand, or to immerse yourself into the story, it can be disastrous for developing a desire to read. Reading skills have nothing to do with reading for a hobby - I know lawyers who can read texts beyond my comprehension, but don't find it enjoyable to sit down with a novel & escape.
My suggestion would be to reverse your standing on the Harry Potter books. Explain to your daughter that you/your husband have changed your mind about her reading them. That doesn't make your first decision bad, just that you think this one might work better for her.
Let her read the HP books, when she wants, for as long as she wants. But at the same time, she should pick out a different book, that she will read & tell you about, & give her a goal - maybe 15 min a day, or one book per week. (for longer, more challenging books, maybe 1-2 chapters or set # of pages per week)
That way, you allow her to keep her enthusiasm for reading that can be fostered through a book that is easier or perhaps more intersting to her, but also allow her to continue in challenging herself in the HP books, & develop her reading skills further.
And as I stated earlier, I think it could be very effective if you engaged in the books with her at this stage. Because overall, it sounds like you have a daughter that has the capability to read, but needs to nurture her desire & enthusiasm to do so.
Good luck!! T.
FYI - some of my favorite books at that age (& still!) were:
The Black Stallion series by Walter Farley
Little House on the Prairie series by Laura Ingalls Wilder
Nancy Drew Mystery series by Carolyn Keene (ghostwriter)
I enjoyed these books because the characters developed over the course of the series & there was continuity in the storyline, so I always had something to look forward to in the next book.