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You should escape that Bermuda triangle as quickly as possible. You are not safe within its borders.
Nepotism is fine, so long as they're actually able to do the job. But once it gets to this point, where it's actually detrimental to OTHER'S work performance, then it's time for a chat with HR.
Buy ear plugs
Are you sure its not their house!!!
Family businesses have their drawbacks
I would leave if I were you, family (and close friends) + business is just a recipe for disaster :/ Not only will you have to deal with arguments that aren't always work-related, but you'll likely feel caught in the middle of it all and be put in awkward situations; it's better to leave before things get messy!
Bermuda Triangle
Keywords
I would suggest silently looking for a different job because that can easily turn to an unsafe and unpleasant work environment. FYL OP.
Start looking for a new job. That could turn into a hostile environment, in which you could not perform to what you know you can do. Also try and help their daughter get a new job so she doesn't have to deal with the hostile work environment as well. If she wants to stay, let her. But try to get out of there OP. Hopefully good luck job hunting. And make sure not to tell your bosses you're looking for a new job!