I'm with OP here.

For comparison this summer we went to Portland ME and I used my CC cert for Hyatt Place Portland Old Town. We got there late and they said either they walk me or put me in a room with a broken bathroom door which had been taken out of the system but presented as my room allocation at check-in (at least they were honest).

We were exhausted and everything nearby sold out so stayed. GM next morning comped both the garage parking and refunded the points (even though it was cert so got 12k of flexible points back vs an inflexible cert with a 16k max which was legit IMO).

If their RM is going to offer the room it's on them to make it up to guest standards and if they can't they need to offer a reasonable alternative which includes refund of points. A room is a room. It sounds like RM is at fault here but that's not the OP's responsibility and the hotel should be responsible for a room not up to reasonable standards.