However, if Chang'e is truly Xihe's daughter, why is her power so weak?
Chang'e being Xihe's daughter is quite likely, after all, this is the Prehistoric World, not modern society. A child does not necessarily have to be born from two people. One person can give birth alone.
The older the era, the more peculiar the ways of giving birth. Before the Great Ancient times, the Heavenly Earthly Origin was dense, roaming between Heaven and Earth. If an Innate Divine Saint accidentally bled, and their blood mingled with the Heavenly Earthly Origin, it would with a high probability give birth to new life.
The Nine Sons of Ancestral Dragon were born this way. Every time the Ancestral Dragon was injured, its Original Source would leak out and resonate with Heaven and Earth, giving birth to the nine innate Divine Demons, known as the Nine Sons of Ancestral Dragon. They were born of Ancestral Dragon's Original Source, hence they are the sons of the Ancestral Dragon.