The reasoning was too encourage people to hang out in common areas to create more of a community feeling. Whether you think that's necessary or a good idea (I went to college long ago, but there wasn't any need to have architecture diving our community), it's not the same as a dorm without windows.
https://edition.cnn.com/2021/10/29/business/ucsb-munger-hall...
> I went to college long ago, but there wasn't any need to have architecture diving our community
Ah, that explains it.
I imagine a few cavemen beating up the first person to build a two story house, because anyone who thinks humans should live off of the ground is not anyone they are interested in taking advice from.
Also, consider that Munger already built a mostly windowless dorm for UofM ~10 years ago, and it is one of the highest rated dorms for the university. And that has fewer affordances for simulating natural light than the UCSB design did.
Lots of off campus student housing is still knob and tube wiring in shoddy timber construction.