Snorkeling with children is mostly a question of what happens when they have had enough. A reef in open water gives them nowhere to go. A shallow lagoon or a sandy island gives them somewhere to stand, warm up and try again, which is why the family answer in Egypt is usually an island day rather than the best reef.
Quick answer
Quick answer: Orange Bay for most families, because the island has shallow sand as well as reef and the boat has shade, food and toilets. Marsa Mubarak if your child is calm in water and you want turtles. Avoid the wall reefs in Sharm with small children.
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Look for three things: somewhere shallow to stand, a boat that stays put rather than moving every twenty minutes, and food included so nobody is hungry at hour five. Orange Bay and Magawish have all three. Infants travel free and share a seat, and any child who does not want to snorkel still has an island to play on rather than a deck to sit on.
There is no minimum age on the island boats and child-sized masks and vests are on board, but a vest is not a substitute for an adult in the water beside a small child. Crews will not take a child into open water away from the boat, and they will not talk a frightened child into getting in. If your child decides against it, the island day still works for everyone else.
In practice, whenever they are comfortable putting their face in water and breathing through a tube, which for most children is somewhere between five and seven. Younger children usually enjoy the island and the boat far more than the mask. Try the mask in the hotel pool before the trip and you will know before you pay.
Wildlife sightings are possible in known areas, but nature is never guaranteed.
Send your hotel area, travel date, group size, and what you want to see. The team can point you to the closest suitable trip without inventing guarantees.