Thank you for your question.  Since your bulbs appear to be in a spot with full sunlight, the reason(s) for their not re-blooming is probably addressed here:  https://daffodilusa.org/growing-daffodils/non-blooming-daffodils/
Perhaps you can review the other potential factors and decide which might apply.  I hope this is helpful.  Good luck!

Hello-Thank you for your reply. I too found that article online but was hoping that someone with more experience could provide better insight into my particular case. Sounds like it could be a damned if you do, damned if you don't situation.

From that I can tell, there may be too much nitrogen or I need to fertilize. With that being said, can you also help me with the second half of my inquiry?

"If I do need to add some amendments, fertilizer I'm struggling with when and how to do that. (i.e. dig them up after foilage dies, mix fertilizer in soil, replant in fall? or some other method?) It's frustrating because the last two years we've purchased a nice mulch and compost mix to add to the garden bed and I had hoped that would haven been enough, but apparently not. Thank you for any guidance."

Many daffodil gardeners whose bulbs are planted close to turf grass have problems with reblooming because the primarily nitrogen fertilizer that is applied to grass "migrates" over to the bulbs.  In order to answer the "how do I fertilize" question, I need information about how you planted them in the first place.  Did you add bulb meal?  You can scatter it around the foliage, but it takes several months for it to have any effect on the bulbs.  If used, scatter it in the spring, so it will start to get to them while the foliage is growing.
Have you divided them?  Have you examined them for disease (typically root rot) to see whether they are not thriving due to that?  Do you leave the leaves until they are at least yellow, and don't bend them over or braid them?  Whatever you do, do not dig them up and store them over the summer, to replant in the fall.  The roots that grow from the bulb, and which absorb water and available nutrients, need the entire year to "feed" the bulb so you get blooms.
Some mulches actually remove nutrients from the soil, but, without knowing what you applied, I can't weigh in.  Had you added bulb meal to the hole where you planted the bulb, it will take a lot of time for that to be depleted, but that depends on how much competing plants take their share, especially the shrub (azalea?) and whatever is in the cages and plastic wrap.  This is the recommended action to get the correct fertilizer to newly planted bulbs:    "While not typically necessary, fertilizers can be used at planting. These fertilizers are more important for the development of next year's bulb than they are for the upcoming spring flowers. If using fertilizers, apply all-purpose fertilizers, such as a 5-10-5, at the rate of 2 to 3 pounds per 100 square feet and work it thoroughly and deeply into the soil before planting. A good organic fertilizer for bulbs is bonemeal with its high phosphorus content. Apply 3 to 4 pounds of bonemeal per 100 square feet of area. Bone meal is often slower acting and more expensive than the other fertilizers. If planting clumps of bulbs, work 1 tablespoon of bonemeal into the bottom of the planting hole."  https://hortnews.extension.iastate.edu/selecting-and-planting-spring-blooming-bulbs      You also might try spreading this mix of nutrients (the 5-10-5) on the top of the soil before you apply mulch.
I wish I could pinpoint the problem(s), but without knowing what you did first, it's hard to know exactly.

THANK YOU THANK YOU THANK YOU!!!  I SO appreciate your free advise. I really wish I could have a professional come out and help me with my gardening questions, so your expertise is an absolute godsend. This response was incredible.

As far as how I planted them in the first place: I followed the directions from the grower (on the label) in terms of depth and timing. They were all planted within the specified depth (I believe roughly 6 inches), and at least 3 inches apart. I didn't add bulb meal. (Didn't even know that was a thing until you just mentioned it so thank you!) I have two fertilizers that I bought on the recommendation from a friend for a different part of the garden but I'm guessing I'll need to go grab some bulb meal (one is a fish type nitrogen fertilizer the other is lime). So if I go buy some, it sounds like I can scatter it now and don't need to worry about digging up the soil and mixing it in?

I have not divided them as it is only year two, but what do I know - maybe I should? I was under the impression that I should wait a couple of years until it becomes an issue, but maybe I'm 100% off base there and need to divide them. Happy to proceed as you see best. I have not examined the bulbs as they did great last year and the foliage looks green and healthy and some other online sources said if they're diseased you'll know from the leaves/stems looking unhealthy (yellow and withered I gather.)

I can say confidently I DID leave the daffodils up until the foilage died last year because I looked that up and wanted to try to encourage good production/healthy bulbs for this year. I DIDN'T however "deadhead" the dead bulbs because I thought they all needed to be left alone. Will make sure to deadhead this year.

Thank you for telling me not to dig them up! I was definitely contemplating doing that so your knowledge there is super helpful (and takes the load off of me!)

As far as the mulch, we use the garden mulch and hemlock from here: http://www.grimmsfuel.com/landscape.html. In total try to apply about 3-5 inches across the top the last two years.

Thank you again for helping me so much. I'm trying (rather desperately) to make sure I won't be disappointed next year. I've consider testing the soil as well.

I guess my last question is: if you don't recommend digging the bulbs up, with whatever bone meal/top soil I wind up using, should I make sure to mix in to the compact soil currently there (just don't go down to bulb level?) Thanks again.

Okay, so a mini-lesson in fertilizers.  On any fertilizer container, you'll see 3 numbers, such as 5-10-7.  By weight, that means that there is 5% (first number) nitrogen, 10% (second number) phosphorus, and 7% (third number) potassium.  Nitrogen promotes foliage (leaf) growth; phosphorus (often listed as phosphate) promotes bulb and root growth; and potassium (often listed as potash) promotes flower growth.  This article explains how to use fertilizer to help bulbs after their first year:  https://ucanr.edu/sites/ucmgnapa/files/153521.pdf  You can gently disturb the soil before applying the fertilizer, but need to keep it undisturbed below an inch.  If the soil is healthy, the soil microbes will break down organic matter, "freeing" the chemical components for uptake by the plants.  In order for soil microbes to do their work, they need adequate water and air, and some mulches will keep enough water from getting to them.
I suggest that you read the following Extension article, which discusses both  the benefits and detriments of mulches, and which type mulches to purchase for specific areas:  https://catalog.extension.oregonstate.edu/ec1629/html