I'm afraid I don't have personal experience of the NYB audition process, but given that you have a supportive teacher who is encouraging your DD to apply to associate programs, and that your DD is still very young, I would be guided by your teacher's advice on this. She presumably has good reasons for suggesting that NYB may not be suitable, and I would trust her experience and knowledge of your child. Whilst audition experience is good, you don't want to risk putting her off by putting her in a situation where she is out of her depth. Perhaps you could ask your teacher whether there are any other associate schemes or junior companies close to you that she could audition for.