It always sucks when something we are partly, or wholly, responsible for has a possible adverse impact on our kids. We can blame ourselves something fierce even if we know the situation is what it is, and there isn’t much we can do to fix it (barring your family winning the lottery, which seems to bring a whole host of other issues to those families).
There have been plenty of times I wish I could wave a wand and fix the (unfixable) issue that was affecting my child(ren). Seriously believe that is the hardest part of being a parent.
Edited to add: I am sure there are several LACs that are less selective for admission (and more generous with merit) but equally amazing for your daughter to discover and apply to during her admission process. We had to base our list on SLACs that fit our budget first and foremost and were pleasantly surprised by how many gave our daughter exactly what she was looking for at a price point that came in below our budget. Literally the only aspect she compromised on was location. This will all work out, and next year you will be wondering why you couldn’t see how well when it was stressful.