Tough situation. That’s one reason why I don’t give friends Disney advice or recommendations. All you DIS strangers, sure... friends... no way! Ha! Kidding... kind of.
Sounds like AKL and AKL CL just isn’t the resort/CL combo for them. AKL rooms are among the smallest of any deluxe resort, if not the smallest. To me the furniture and design are dated, although I think they are starting a refurb now/soon (someone correct me on that, haven’t followed details closely). AKL and WL share the same architect and design style - small rooms/bathrooms but wonderful resort common areas. Kind of a trade off.
All standard CL rooms are located on the 4th floor, the lounge is on the 6th floor. This doesn’t personally bother me, but it does for some (sounds like your friend is in that camp). The room/lounge location situation is much different at AKL than other CLs and long walks room to lounge are the norm.
Advice for what to recommend now? Not sure, hard to offer advice to make things better since their objections are things that can’t be changed. We love AKL as a resort and like the wonderful grounds, amenities, activities, places to eat, CMs in the lounge, etc, so don’t care if we’re a 1 or 7 minute walk - but that all sounds sort of flippant to someone who isn’t enjoying the setup. If they have several days left, maybe something extreme like moving to a new resort?
Half way through our trip in April our kids started doing the bead collecting activities - that ended up taking the better part of 2-3 days and was a fun adventure for them. We also ended up spending a lot of time at the Kidani pool as it has a large slide, splash area, and a nice bar. We almost didn’t even go over there because I just “assumed” it was a basic pool... I had not done my research and was wrong. Not sure if appealing/options for your friends.
Good luck!