You're not going to like this post.
Sell the place in Kentucky. Move elsewhere -- how about East Tennessee?
Get out of that town, to somewhere else for a "fresh start".
DO NOT provide a forwarding address to the daughter.
Do not contact her again.
Write her OUT of your life (and your will, if you have one). Bad seed.
Remember, if she knows how to find you -- the ex-con does, as well.
Of course, this probably means losing track of the grandkids. So be it.
But you can put THEM in the will (instead of her).
I told you that you weren't going to like this post.
As unsavory as selling and moving might seem, if you do decide to sue, being at least a couple of counties away could help insulate you from any blowback conducted under color of law. From what you have described, that is a very real possibility where you are. (Look for a jurisdiction with a more 2nd Amendment friendly bench as well.)
I know that would be disrupting for your wife's career, too, but not necessarily something really damaging because certifications and licenses should be good anywhere in the State.
Weigh that against the False Arrest, bogus charges, disruption of your lives, loss of two jobs and any income from then (damages that can be quantified), and all else. You could even throw in that because of those events you felt it necessary to move as you were no longer comfortable in your home (in that jurisdiction). That could make for a pretty meaty lawsuit.
Things to consider, anyway, but make sure you get your feet back under you.
Remember, Time wounds all heels, and as much as you want the fight to be over, the only way to prevent it from happening to someone else is to hit back at the people who perpetrated this miscarriage of justice as far as they did.
Thankfully, the good sense of the Grand Jury prevailed over the views of a court and police force who apparently ignored the law and facts of the case out of laziness or incompetence to push their personal political agendas.
You are all in my prayers, especially the grandkids who are being denied access to you. In time they will likely realize what they are missing, and hopefully are old enough to figure out how to find you when they come of age. My heart goes out to you all.