Bait and switch? Is this illegal? [US - CA]

[US - CA] I think this apartment did a bait & switch. I recently applied to a beautiful apartment unit that I loved. It had lots of natural light, high ceilings, and a balcony with a view. I submitted my application immediately after tour. I paid the holding deposit, app fee and my income has been verified. However, they were still processing my application, my app has not been approved and no lease were signed. A week later the property manager called me and told me the unit I applied for has become unavailable. She said that corporate accidentally listed the unit and it's above her now. She then offered me a different 1 bed with no balcony, smaller ceilings, and way less natural night for the same price. She said she would give me $100 monthly discount for the inconvenience. None of this makes sense to me but my current lease is up next week and I don't have enough time to find another apartment so I reluctantly agreed to the other unit. The manager calls me the next day and asks if I still want the replacement unit, I asked about the old unit I originally applied for and she told me corporate has put another tenant in that unit. All of this sounds suspicious to me but really I feel like there is nothing I can do. Is all of this legal? This seems very sketchy and not sure what I can do about this situation.

Note: I'm in Los Angeles and this happened the week of the fires. Another theory is that they took the unit away to price gouge.

TLDR: I applied to an apartment unit and during the app process the manager told me corporate has put another tenant in the unit I am applying for even though I already paid the app fee, holding deposit and passed the income requirements. They then offered me another unit with no balcony and way less natural light. I did not sign a lease yet as my application was still in process.

UPDATE: I ended up just signing with the replacement unit. It pisses me off that I got cheated but honestly that is my best option right now. The manager did offer to give back my app fee and holding deposit, but I've been apartment hunting for 2 months and I've seen a lot of worse units for that same price. Also with only a week left before my lease ends I just want the apartment hunting to be over with. The manager did honor the $100 off a month (maybe I could've negotiated more but I am in a desperate position) which is good, I'm also moving from a studio to a 1 bed so overall this space is still better than my current. The situation is unfortunate, unfair, and predatory, but I believe I made the best choice for my situation. Just going to count my blessings and move forward.

Thank you everyone for your input and advice! Hopefully you guys have better luck than me with the crazy rental market