Just came back from my trip.
After repeatedly pursuing the agency and a complaint at the BBB, they answered an email replying they had booked me at an alternative hotel. In a previous email I had specified which alternative hotel would be fine for me. This hotel was not at the festival site, but had frequent shuttles or was a nearby walk away. The room they rebooked me on was more expensive than what I had originally paid, but I was not charged a difference. On arrival I was given a junior suite, but with a view of loud construction.
I also received 25% of my original payment as a voucher to use at another hotel.
In the end, the service recovery was decent. If asked whether I'd recommend them to friends and family, I'd answer 5 or 6.