Quick note on phonics: I have a sight reader in my 2nd grader. He knows what sound each letter makes, and what sound letter combinations make (such as 'ch' and 'th'). But he is a sight reader, and that is just the way it is. And he is a damn good sight reader by the way.
He is getting better with phonics, but I put it all in perspective. I am a sight reader, and most likely, so are you. Only on occasion do I need to sound out a word (although it came in handy when I was learning a foreign language). Yes, phonics are handy-if-not-essential as a skill. But sight reader or phonics master, they are still going to reach that same goal of reading the damn book. ASD kids just are hardwired differently and need to need to learn their own way and not be pigeonhold by an education system that are obsessed with meeting test score goals. Really, how successful has that been so far for US schools?
Talk to the teacher. Talk to whomever you need to about alternatives. Make sure they understand there are 'neuro-typical', and there are 'neuro-different'. Talk talk talk until they are so sick of your voice, they just agree with you.