I think Santa Clara is a great option. Does your daughter have any interest in continuing on an instrument?
Santa Clara has a good music department, from what I hear. Rollins would also be an option.
I wouldn’t worry about location so much at the undergrad level, in terms of connections. She may need grad school and that is when USC would be useful.
I will say that internships can accomplish a lot of what she wants in terms of job prospects. One of mine randomly interned at an agency with several Grammy winning clients. (No interest in the business.) That agency was not in LA or NYC but instead a small coastal town in the Northeast. Not sure anyone at that agency majored in music business or industry.
That said, sell the boat anyway if you haven’t used it in 4 years. And if health issues mean your husband loses his job, it is possible assets won’t be counted. You could look into that.
I honestly think the chance of a 21 year old with a BM or BA making it in the business in LA isn’t any greater at USC. There are agencies all over the country, artists everywhere to manage, and she may need grad school anyway. I just wouldn’t base this decision on job prospects. Instead, think about the experience she wants for the next 4 years.