I'm trying to understand what happens when Alice(Bob) apply a unitary to her(his) part of an entangled state. Let us consider the following unitary transformations: $$U_1 = \frac{1}{\sqrt{2}} \begin{bmatrix} 0 & 0 & 1 & -1\\ 0 & 0 & 1 & 1\\ -1&-1&0&0\\ 1&-1&0&0 \end{bmatrix} \text{ and }~ U_2 = \frac{1}{\sqrt{3}} \begin{bmatrix} 0 & 1 & 1 & 1\\ -1 & 0 & -1 & 1\\ -1& 1 & 0&-1\\ -1&-1&1&0 \end{bmatrix}. $$
Suppose Alice and Bob share the state $|\psi\rangle_{AB}= \frac{1}{\sqrt{2}}(|00\rangle _A|00\rangle_B+|01 \rangle_A|01\rangle_B)$. To improve readability I will say that $|\psi\rangle_{AB}=\frac{1}{\sqrt{2}}(|0\rangle_A|0\rangle_B+|1\rangle_A|1\rangle_B).$
My problem is when I try to calculate the resulting state after Alice applies $U_1$ and Bob applies $U_2$ to their part of $|\psi\rangle_{AB}$:
\begin{align} (U_1 \otimes U_2) &\frac{1}{\sqrt{2}}(|0\rangle_A|0\rangle_B+|1\rangle_A|1\rangle_B)\\ &= \frac{1}{\sqrt{2}} (U_1|0\rangle_AU_2|0\rangle_B + U_1|1\rangle_AU_2|1\rangle_B)\\ &= \frac{1}{\sqrt{2}} \Big(\frac{1}{\sqrt{2}}(-|2\rangle+|3\rangle) \frac{1}{\sqrt{3}}(-|1\rangle-|2\rangle-|3\rangle) + \\ &~~~~~~\frac{1}{\sqrt{2}}(-|2\rangle-|3\rangle) \frac{1}{\sqrt{3}}(|0\rangle+|2\rangle-|3\rangle)\Big)\\ &= \frac{1}{\sqrt{2}}\Big[ \frac{1}{\sqrt{6}} \big(|2\rangle|1\rangle+|2\rangle|2\rangle+|2\rangle|3\rangle -|3\rangle|1\rangle-|3\rangle|2\rangle-|3\rangle|3\rangle\big) \\ &\phantom{= \frac{1}{\sqrt{2}}~~} +\frac{1}{\sqrt{6}} \big(-|2\rangle|0\rangle-|2\rangle|2\rangle+|2\rangle|3\rangle -|3\rangle|0\rangle-|3\rangle|2\rangle+|3\rangle|3\rangle\big)\Big], \end{align}
here is where I'm having trouble, I'm not sure if I can just simplify this expression. In other words, to allow interference between the states or not.
Simplifying the terms would give: \begin{align} &= \frac{1}{2\sqrt{6}} \big(|2\rangle|1\rangle+|2\rangle|3\rangle -|3\rangle|1\rangle-|3\rangle|2\rangle -|2\rangle|0\rangle+|2\rangle|3\rangle -|3\rangle|0\rangle-|3\rangle|2\rangle)\\ &= \frac{1}{2\sqrt{6}} \big(|2\rangle|1\rangle+2|2\rangle|3\rangle -|3\rangle|1\rangle-2|3\rangle|2\rangle -|2\rangle|0\rangle-|3\rangle|0\rangle) \end{align} that is not a valid quantum state because $4(\frac{1}{2\sqrt{6}})^2 + 2(\frac{1}{\sqrt{6}})^2 = \frac{1}{2} \neq 1$.
tl;dr: What's the resulting state after $(U_1 \otimes U_2) |\psi\rangle_{AB}$?