I would contact the BBB and an attorney. See what your rights are legally. It sounds like to me it is their mistake and for all that hassle and having to look for a childcare, they should have given you a break on the payment.
Next time get a licensed or registered childcare. That way you can report them to DFPS to complain and it will be on their record.
Sounds like to me the teacher was at fault and wasn't handling the situation very well. Sounds like they didn't try everything that they could with your child.
We've had difficult kids being foster parents. We've had a few issues with daycares also. We've never had one kicked out.
If the behavior continues try Love and Logic. That is what we are trained in. They have a website www.loveandlogic.com Maybe suggest this to the daycare.
Whenever there is change, kids sometimes get out of whack and the routine is different. Sounds like the teacher didn't have enough experience or wasn't willing to handle a child having difficulty with the change.
We use a home daycare and it is a more relaxed setting. We use it part time, sometimes it can be expensive. I personally like our church the best, we have our son enrolled in a summer Parent's Day Out program. You might check into church programs. I know our church requires you to be a memeber or attending activities at our church. They are accredited and that is higher standard to meet requirements and they get inspected and have someone overseeing them and their actions and facilities. They do sensory play with rice and shaving cream and fingerpainting. That is more than the home daycare that we use. However she has all ages mixed in together. So, my child gets to play with older kids, which is good also.
You might try writing a letter to the owner of the daycare about your concerns and the problem with the refund and tell them you are contacting an attorney. That might get them to stop harassing you. Good luck.