We swapped to sheets and blankets. She coslept her whole life previously. First wrapped, then in a sleeping bag, and then blankets in her cot in her room with the rail off. She transitioned so well, I was really surprised. We found her sleep improved too, from 10+ wakeups a night to 2-3.
We took Moo's off later than his friends did, he was about 2.5. He didn't ever try to climb out or anything, it was just easier because I was then feeding his little brother when he woke up every morning. Good luck!
Oh in regards to the sleeping bag, you would be surprised how fast they can move in those things lol! She might be fine to stay in it.
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