dont't stress yourself out on it. Your child seems to have a good grasp of understanding already since she can identify objects. My boy is also like that. He can says words but refuse to say it. I actually let him watch education videos from youtube which I think is better and more varied and also more interesting. After watching it he's able to say some alphabets, phonics and numbers, Chugginton seems a little tough for young toddlers.
Toddlers will interrupt reading since their attention span is short, it is really normal for them to interrupt reading. The only thing to do is to be persistent or wait for them to grow up a little.
dont't baby talk to her, speak properly and clearly, talk to her all the time and watching cartoons is the best time to explain and introduce words.
dont't give up, each child is unique and develops at their own pace.