Same here, but on PC. It just popped up yesterday for me though!
I wasn't having this issue playing families in Brindleton Bay and Newcrest. I had created and updated several houses there over the past few weeks and none of the Sims had this moodlet, ever. Most of the homes were updated and upgraded. Monday of this week I started building a new "village" on the Crumbling Isle 64x64 in Windenburg, I partially finished yesterday and created some Roomie Sims to move in. They were getting the "Poorly Decorated moodlet OUTSIDE, they hadn't even made it into the house before being in a bad mood for 2 hours.
I had them working in the garden, so I assumed it was a glitch about being outside possibly; I still had some decorating to do in the front yard and it was cold, but this has never happened anywhere else before coming to Windenburg.
I had the SIms go in one by one to visit the actual house. The 2 hours wore off and they were happy for a moment before the moodlet came back. I redid the open living, dining and kitchen probably 4 times in different colors and added several items to bump their room decor, still hated it. I sent them to bed, including myself, because after a week on a lot - that was pretty frustrating to redo it and it still be bad.
I woke up this morning in hopes my Sims would wake up and love their rooms. No, that was a reach, as they all went to Poorly Decorated as each woke up and went to shower. I'm guessing this is an issue/bug; kind of like the "needs exercise moodlet" that stays on even while exercising.
