"He's telling us not to use it, and then he's using it himself," Stapleton
The instructor is not there to learn the course material, the student is. If the student could explain how having an AI, instead of the student, providing answers to the instructor helps the student learn the course material, perhaps she would have a case. The teacher is free to use any and all resources at any time, that doesn't mean the student has a "right" to use the textbook on every exam just because the teacher used it to write the exam.
And the article never mentions how much AI generated content there was. Was AI generated content used on one assignment, a couple of quizzes, some supplementary material, part of the syllabus, or the entire textbook?
I think she is still entitled to a refund, and from every education institution she attended, because somehow they conferred a degree upon a student who has zero clue what the basic point of education is.