There is room for compromise here, which I don't see they are interested in pursuing, unless I didn't see it. If she doesn't want to wear shorts, then what about pants of some type? Gym pants. I don't see a problem with that.
I don't have a problem with her wearing sweats, etc. I do have a big problem with this BS diversity training, and muslims being allowed to travel to various schools to tell them how to accomodate their religious needs.