I agree that changing schools is not an option, @Hangdog ! Your daughter earned her place, wants to go and should be accommodated. If she’s okay with the housing situation, I’d stay out of it, but do arm her with knowledge about steps she (not you!) can take if she isn’t. The only area where you may want to get involved is asking for (really, insisting on) lower room charges because she is not in standard housing.
My kids were both at LACs where there is no tiered housing structure–everyone pays the same regardless of housing type–and in general, I like this. But in their cases, even the crappy dorms were still standard college housing. In your daughter’s case, she’s living in a space never intended to be lived in, and I would insist on a reduced charge for that.