Thanks for sharing your experience, and our experience is similar regarding being direct and clear when we need to communicate something important. This includes removing any distractions from the environment. She does seem to understand emotion sometimes, but inappropriate reactions make it hard to tell.

As for examples, she consistently laughs when babies cry, and often when we scold her for any 'dangerous' type behaviors she also laughs. There are times when she will respond appropriately.

We are adjusting to include her more in conversation, asking her to indicate preferences, etc.