In the 30+ years I have been visiting (15+ years as an adult paying for myself), I have had my fair share of snafu's. Some major, some minor. None that were not resolved by keeping calm and working with Disney to fix the issue. I have had several resort issues upon check in and simple proof such as email, screenshot, confirmation numbers, etc. is usually enough to get the ball rolling. We had an issue a few years ago at BC when we checked in which tarted off with a rude CM but when Ispoke to the manager (calmly), he quickly provided us with a temporary room and explained that there are always "emergency" rooms available in the event of a situation like ours. Not sure what happened with your situation but its hard to imagine Disney not taking care of you in some way, even if it would be a different resort or different type of room.
Here's the rub insiders on the business side of TDO have repored that TDO executives consider DVC members and AP holders as 'bad business' because they are a drag on the revenue numbers.
That said as far as they are concered you are 'locked in' as in WDW knows they have your money, And with DVC they have your money for the next 30-40 years.
As such WDW managers have no incentive to 'make it right' because it's not like a DVC member is going to end their stay and head off to the Swolfin or the Marriott Grand Vista. So when you have a problem the attitude is generally 'suck it up buttercup, youre lucky to be here'. And if DVC members end their stay early well thats an upsell possibility for CRO and 'breakage' income for DVD.
As I've said this is a NEW attitude which started about 2012 and followed the end of the 'open' association meetings where at one time members could go 'on the record' about issues with DVC.
Also read your contract carefully, while DVD MUST give you your yearly allocation of points, there are NO corresponding guarantees that you will be able to exchange them for DVC lodging directly during your use year. Trade them for 'cash' rooms yes, ABD yes, cruises Yes, RCI Yes. see a pattern here?
I wish you better experiences than we have had with DVC recently, For a long time it was GREAT, I was its biggest fan and did lots of referrals to other people. Recently just awful and getting worse.
Like everything else going wrong at WDW it's because they no longer see you as a Guest rather they see you as a wallet.