Regarding the C2C wizard, the most important message is: Ignore it, it definitely has flaws and it doesn't matter. Here is how I know that:
My CELPIP scores are 12/12/10/10. Apart from many other details in the C2C wizard, I filled these details in. In the end, I got the message that I am not eligible for the FSW program. For some reason the wizard thought I don't pass the mark of 67 points.
Just like you I couldn't comprehend what detail made me ineligible. Then, after a lot of experiments with the wizard, I found a solution: If I leave everything the same but change my language scores to 10/10/10/10, all of a sudden I am eligible. Obviously this doesn't make any sense and is a glitch but there we go.
I did that, then used the code in the end to start the creation of my EE profile. The only thing the code does is that it pre-fills some forms for you but you can still change ANY of the information before submission (which you also noticed regarding your kids).
In the EE profile I of course stated my correct language test results of 12/12/10/10. I submitted my profile, got the message that my profile is eligible within minutes and about 8 weeks later I got an ITA. My application is currently being processed.
Long story short: It is totally normal and nothing to worry about that the C2C wizard deems you ineligible for completely random reasons.
This still leaves the question regarding funds for your kids. But at least it resolves the C2C wizard issue, I hope.