Before anyone bitches about the story, it would be advisable to go to
http://projectumbrella.net for a while, if the story is even in your interest.
We've been making the story coherent for a few years now. Turns out if you want to understand the story, you simply cannot rely on the localized English versions. The translation work on them is pathetic, with many of the essential files being cut down, mistranslated, censored and simply having things made-up completely. The "cheesy" dialogue is also a result of the pitiful localization work.
There are no "plot holes" in the series, or even retcons. Only mistranslations, and other stuff which is just the result of people misunderstanding or placing too much importance in pre-rendered backgrounds or something silly (like the barricades in the RPD in BH3, which are destroyed by Zombies). CAPCOM have also already explained the fates of Sherry, Steve and other characters. The problem is, they have only offered the explanations in Japanese material. They generally release nothing worthwhile or pertinent to the plot in the West.
P.S. Fuck the "Resident Evil Wikia". It needs shut down.
They already explained it. She is in the protective custody of the U.S. Government. Wesker had access to her through spies in the department responsible for her. Also, the first Wesker's Report is generally not really canon. Also,
she has her own stand-alone story set in an alternative universe.
Relevant Links
BIOHAZARD UMBRELLA CHRONICLES ~Prelude to the Fall~
BIOHAZARD 2 Official Guide Book
BIOHAZARD 3 LAST ESCAPE Official Guidebook - Complete Conquest of Nemesis
BIOHAZARD GUN SURVIVOR OFFICIAL GUIDEBOOK
BIOHAZARD CODE:Veronica Kanzenban Kaitai Shinsho
biohazard 4 Kaitai Shinsho
biohazard 4 Perfect Capture Guide
BIOHAZARD 5 Kaitai Shinsho
Chronology of Evil
BIOHAZARD Canon
BIOHAZARD archives II
INSIDE OF BIOHAZARD THE DARKSIDE CHRONICLES
Angela's Diary
biohazard 4 Incubate