Daily watering is likely far too often ... I'm not seeing quick useful links to peperone (as you can imagine, I'm getting a lot about pepperoni and pepperoncinis).
But if this is a C. annuum cultivar, these are adapted to arid climates. Let the plants tell you when they need water (droopy leaves); they spring back remarkably quickly, like in under an hour. It sounds like you're drowning them and ending up with other issues as a result.