KL street food is generally safe at busy stalls with high turnover — Jalan Alor, Kampung Baru, Hutong. Ice at established stalls usually comes from commercial ice suppliers, not tap water, but it's not guaranteed at every cart. Kids: stick to cooked food, bottled water, and stalls where locals queue. Avoid pre-peeled fruit sitting in sun. Tap water isn't for drinking anywhere in Malaysia — brush teeth is fine, drinking is not. Malls and chain cafes are the conservative option if someone has a sensitive stomach. Probiotics help; imodium exists for backup. Start with one stall, not five in a night.
Hot satay + iced teh tarik combo never failed me in 30 years. Your wife isn't wrong to be cautious with raw shellfish though.
Ate everything for 3 days — fine. One dodgy oyster on Jalan Alor, regret only that.