She was fired because of her bigotry.

At the link in the OP:

According to the New York Times, Dawson was reported to have made antisemitic comments in a conversation at a conference in March. She allegedly said the university was “controlled by wealthy Jews,” according to documents obtained by the newspaper through a Freedom of Information Act request.

Dawson was also accused of saying that Jewish students were “wealthy and privileged” and not in need of her office’s diversity services and that “Jewish people have no genetic DNA that would connect them to the land of Israel,” according to the documents, which were part of a complaint from the Anti-Defamation League of Michigan.

I went to Michigan and this really distresses me. There have been numerous incidents and now anti-Semitic groups are trying to take over student government.

When my parents went to Michigan in the 1950s, they said that it was a good alternative for Jewish students who had trouble being accepted into the Ivies. I always thought of the University as a welcoming place for Jewish students.

I think it's likely she did make those statements and then doubled down. I hope she does some soul searching.