What should I do?

My fiancé has a step daughter and I have no biological children. He went through a custody battle and got 50/50 so we obviously we have her half the time. I think children should be raised with morals, rules, and respect. I was not raised like that, and have realized over the years that children need that to be respectable adults. My fiancé has this mindset of “if I punish my 3 year old daughter, she will not want to see me” so she’s the boss of our home when she is there. She screams when she doesn’t get her way and she tells us no, and literally bosses her father around.(I underpays. She is three and some of it is normal but this is an extreme drama queen lol) I tell him all the time that I do not want my children raised like that and have tried to be a step mother towards her and tried co parenting with her mom and dad. But my fiancé gets so irritated. My mother and step father went through the same thing and almost divorced over him trying to reach her children to be respectful and follow rules.

My mother tells me that my fiancé is going to hate me if I try to parent his child and that I am wasting his time and mine if I don’t stop.

Am I in the wrong here? What am I suppose to do?