Hard to tell what the sequence was, since the article has just about zero information. It's mostly meant to stoke outrage.
I'll hold my fire until I hear what actually happened. So far, I don't see anything egregious here. Burial at Arlington is not by any means guaranteed to any service member, and in fact it can be fairly hard to get. If the family still lives in Roseville, there's a National Cemetery just the other side of Sacramento; it's a very reasonable assumption they'd have wanted her buried there, where they could visit her grave in half an hour instead of having to fly across the country.
If this system works the way it used to when I had to deal with it, they ask the family where to send the remains IF NOT the home of record; there's every possibility the family wanted her at Arlington, but there was no space available at that point. Which might be why this is all happening now, years later? And if so, I certainly don't think it's the DoD's responsibility to schlep remains all over the country at the parents' whim. What happens in a few years, when they decide they were wrong and want her back in Roseville, because mom's got arthritis now and can no longer fly to Virginia? Is it reasonable to move her again at taxpayer expense?
It's hard to form an opinion when the article is so clearly one-sided.
ETA: Ah. And now there's more info out. Seems the article the OP posted was (SHOCKER!) not the full story...

This is a great example of how the legacy media is not the only one posting biased info to shape opinion.