The difference is the Grove deliberately hid and blocked exits, conception was in compliance with the regulations as far as structurally required. New regulations are needed but application to boats makes things that sound simple actually can be quite complicated.Cocoanut Grove fire - Wikipedia
It reminds me of this, lots of development in codes, which will probably make anything close to live aboard diving in California more exclusive because of the increased operating expense.
Emotions aside this is not a slam dunk prosecution, the documentation shows compliance.