Didn't know about the room upgrades being bugged, is it because Morgana replaced the old shopkeeper? My best guess is to just wait for a fix or increase Qiyana's values and try to go on from there but I assume that won't change her room either
I actually have seen that bug on even new games pre Morgana, ever since Miss Fortune showed up. Makes since as you have to talk to Miss Fortune and Riven.
The laundry should be under Key Items. You just need to leave the inn, use the laundry item and pick the option "Just clean them". After that you can just return to Lux