While there is no specific City of Lynnwood ordinance or Washington state law restricting children from playing in the street (residential street or otherwise), state and case laws apply to all pedestrians and bicyclists including children in neighborhoods playing in the public right-of-way. Please see this resource for general explanations: Pedestrian laws & safety | WSDOT (wa.gov)
If after studying and understanding state law you still want to allow your children to play in the street, the following may have at least one point that could be helpful for safety. Legal Disclaimer is hereby stated that by providing the following, the City of Lynnwood in no way encourages parents, guardians, caregivers, educators, siblings, or children to place themselves, another person, or living entity in public or private streets, paved or unpaved, where moving vehicles can legally or illegally travel.
Maximize Safety Measures
Normally the most effective safety measures when children or adults are actively present on the sidewalks and in the street is to begin by acknowledging that streets are designed for cars and that moving vehicles will be present. Children can be among the most vulnerable. Maximizing safety for children includes: