She doesn't live locally anymore, so that could be a factor.
Just to state for the record, if Kat is sleeping with a player I am not slut-shaming her. I am, however, questioning the DCC organization for not enforcing their own rules across the board. Whether I think the rule is archaic or it, it's their rules and they should apply to everyone equally.
Also, Holly was one of the best DCC dancers they have ever had in their entire history. If this is the hill they wanted to die on, they should have ignored that transgression and not excuse the former Honeybee who has two left feet!