I think the student is making a mountain out of a molehill. They didn’t “transform him into a studentin” they just replaced him with a female student in the position he was in the original photo.
Sure, it’s stupid to be so lazy that you can’t use a new photo with whatever characteristics you want. It’s also stupid to slim down a chubby student without permission. I think she has more reason to be upset than he has. That said why does the university see the need to alter reality?