Jeff, I am so sorry for what you and your wife are going through.
You and your wife did a wonderful & selfless thing by adopting your daughter and then giving a home to her children when she neglected them. I agree with the other posters, her extreme behavior - lying, manipulating, difficulty with accepting rules and authority, promiscuity, poor impulse control, lack of remorse, inability to love, etc - seems to indicate an anti-social personality disorder. That was probably simply something in her DNA and you have little to do with it. There is a good chance that your daughter experienced some neglect during her first 2 months. Studies have shown that neglecting a newborn can cause hormonal imbalances that leave them unable to form social & emotional bonds. The problem can persist even after being adopted into a loving home. That's not your fault.
While being raised a JW isn't the ideal childhood, there is absolutely no reason for the child of loving JW parents to act in the manner that your daughter is. While some JW kids rebel, your daughter's actions are beyond simple teen or post-JW rebellion. The JW religion is not to blame for this. There is nothing wrong with setting rules for your child or teaching them a moral code. ANY decent parent would do the same. Please do not feel guilty for teaching your child those things. I am saddened (but not surprised) that you didn't get the support you needed from your cong.
As much as it pains you, going to jail may end up being the best thing to happen to your daughter. Sometimes, people need to hit absolute rock-bottom to come to their senses. She will be away from the drugs and hopefully will be able to receive some counseling. There is always hope for your daughter. Don't let anyone tell you otherwise. No one is beyond the grace of God, no matter how far gone they may seem. Never give up hope. Keep praying for her, even when you're angry, even when it's difficult. I have found that when I'm angry or heart-broken by someone, praying for them actually has a calming effect on me. You would be helping both you and her by doing that.
You and your wife sound like good people. You did everything you could. Focus on that and on your grandchildren. I will keep you and your family in my prayers. God bless you all.