"Mother created a Roth IRA for daughter over 10 years ago."

It's a common incentive for a parent to help the working child open an Roth and even fund it, as an incentive match to a child learning about the working world.

"Client/daughter took early withdrawal and closed out the Inherited Roth IRA."

What inherited IRA is this? So far, you did not describe anything inherited.

"Client/daughter was unemployed for 2022 and is reporting the liquidation of the ROTH IRA as the only item on her tax return."

Okay.

"It is my understanding that there should be a 10% penalty for early withdrawal of a ROTH IRA. Lacerte is not showing any penalty nor any of the requisite forms."

Did you mark something as inherited? Is this daughter a dependent on the mother's form? What do you have from the 1099-R? Is the total return lower than basis? Were there earnings? Were there any contributions within the prior 5 years? Have you read all the regulations that would apply, to see where the taxpayer (daughter? mother?) is or is not eligible for this distribution?