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Pretty sure it may have changed to AOR from AIP this year.
AOR is not addressed to PA but to a sponsor. As per service Ontario below is what required and I don’t think AOR satisfies below requirements. I am happy to be proved wrong here and would be a good news if one can apply with AOR

For applicants for permanent residence​

  • Immigration, Refugees and Citizenship Canada (IRCC) letter (IRCC used to be called Citizenship and Immigration Canada, or CIC). The letter must:
    • be on IRCC letterhead, addressed to you as applicant
    • state IRCC has confirmed you meet the eligibility requirements to apply for permanent residence in Canada and you have not yet been denied.
 
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AOR is not addressed to PA but to a sponsor. As per service Ontario below is what required and I don’t think AOR satisfies below requirements. I am happy to be proved wrong here and would be a good news if one can apply with AOR

For applicants for permanent residence​

  • Immigration, Refugees and Citizenship Canada (IRCC) letter (IRCC used to be called Citizenship and Immigration Canada, or CIC). The letter must:
    • be on IRCC letterhead, addressed to you as applicant
    • state IRCC has confirmed you meet the eligibility requirements to apply for permanent residence in Canada and you have not yet been denied.

Spouses are now able to secure OHIP with AOR so assume children likely can as well. If not passing eligibility should secure not AIP. The change happened in mid 2024 after it became easier to secure TRVs for spouses being sponsored.
 
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Thanks @canuck78 and @lithosh007. Now that I know either AOR or AIP letter is sufficient to apply for my daughter's OHIP, it gives me a little relief. When I applied for Outland Express Entry, it took over 26 months. I hope my daughter's (Inland) sponsorship Eligibility passes much quickly.

On Reddit and this forum, I read that there are no certainties for which streams AIP/AOR letters are issued by IRCC, some times the letters are not issued at all, so that is one thing I guess I will have to keep in mind. Thanks both of you for your advice.