@NY Dad, it sounds like you really need to have that clarifying conversation with your gym. If I were you, I would be asking what 'pre-team' actually is at your gym. From the way you've described it, it sounds more like advanced rec (with the possibility of advancing to team training eventually) rather than pre-team as I would understand it.
Our gym's pre-team is a year-round grouping of 4-6 year olds whose purpose is to get the gymnasts ready to start training Level 3. They train about 6 hours a week. Those gymnasts in pre-team move to training Level 3 the summer after they started pre-team (increasing their hours to about 9 hours per week). There is not some sort of testing in order to move up...the 'testing' was done on being chosen to join pre-team (as opposed to staying in a rec class or being invited to join the Xcel team).
In the end, though, it doesn't matter what process my, or any other gym have for move-up; it matters what your gym does. More importantly, figuring out what you want from your child's participation in gymnasts matters. If you really like your gym, trust your coaches and think they run a good program...be willing to go with the flow as to how they think your daughter's progression should go. Take a step back and let the gym do what it does. Trust that the coaches have a plan for your child and it is a reasonable one.
However, I have gotten the feeling from your posts that you aren't feeling good about the process. That you are questioning your gym/coaches' process and decision making. If that is the case - this is where figuring out what you want/believe is really important. Would you be ok with your daughter repeating pre-team next year if that is what the coaches believe to be the best choice for her? Is training Level 3 the only decision that would satisfy you? Do you believe you know where your daughter should be placed? Do you feel the coaches should be/could be doing something differently which would radically change or improve your daughter's gymnastics? Would you be ok with your daughter scoring mediocre/poorly in Level 3 and possibly repeating the level?
Obviously, I don't know the answer to any of those questions. But, if you haven't already - I think you should decide what your answers would be to those questions, and why. I think knowing those answers will help you figure out what to ask in your conversation with your daughter's gym and next steps to take after you have the conversation.