Permit users with author role to edit a custom post type

Register “dailies” as a taxonomy.

The Codex for “register post type” says “even if you register a taxonomy while creating the post type, you must still explicitly register and define the taxonomy using register_taxonomy().

PS: I would have added this as a comment to your question had I been able.

UPDATE: 22 August 2018
OK. Let’s start this discussion again. You do need to add the taxonomy but that isn’t the reason that your authors can’t see/edit your posts.

In your function to register_post_type, there were some syntax errors in your “capabilities” that were enough to stop an author seeing the uo post. So, edit ‘capabilities’ to match the following:

'capabilities' => array(
'create_posts' => 'do_not_allow', // false < WP 4.5, credit @Ewout
'read_posts' => 'read_uos',
'edit_post' => 'edit_uo',
'edit_posts' => 'edit_uos',
'publish_posts' => 'publish_uos',
'edit_published_posts' => 'edit_published_uos',
'edit_others_posts' => 'edit_others_uos'
),

Using the Members plugin, assign all the capabilities for “uo Articles”, though maybe you won’t want to grant the various “delete” and “private” capabilities.

You don’t need to add the additional author role. In fact, it might be more confusing that it is worth.