Thanks to everyone who has responded.
I can’t confirm at this time that DCC was the issue - but something here is amiss. The CC receipt they gave me does not list any alternative currencies besides local, but I know that my bank did not get this wrong. They have gotten every transaction before and after correct.
The latest response from the property only adds to my confusion:
”We have reviewed the transaction records and even viewed CCTV footage. It appears that there were limitations beyond anyone's control this time, possibly due to the card type and currency restrictions when conducting a manual transaction. It's possible that your card may only support transactions in a single currency when done manually, as there is no reason for us not to present the option to choose currency.”
Edit to Add: The card is a WOH Chase Visa - nothing out of the ordinary on my end.