AITA for letting my best friend stay in my guest room instead of my mother-in-law at Christmas?

Hi Morgan! I’m a huge fan from Brazil and I absolutely love the podcast. This happened last December, and even though it’s been almost a year, I still think about it sometimes and wonder whether I was actually the asshole in this situation.
So: AITA for letting my best friend stay in my guest room instead of my mother-in-law at Christmas?
I (32F) live with my husband, “Lucas” (32M). He’s originally from Rio de Janeiro, while we live in a smaller city about four hours away from his family.
Every year, his parents come to spend Christmas with us. My MIL and I are both completely obsessed with Christmas, so a few years ago we decided we would alternate hosting: one year Christmas at her house, the next year at mine.
Last year was my year to host.
A few weeks before Christmas, though, my childhood best friend, “Camila” (29F), was going through an absolutely awful divorce.
She had recently found out that her husband was cheating on her with a coworker — and, to make things even worse, the coworker was pregnant with his baby. Her husband left their home and moved in with the other woman, and my friend suddenly found herself in this horrible transitional period where she didn’t really have anywhere that felt like home.
She’s one of my closest friends in the world, so my husband and I immediately offered her our guest room while she figured out what to do next.
Our house has our bedroom, one guest room and an office. The guest room is normally where my MIL and FIL sleep when they visit.
By December, Camila had basically moved into that room. It wasn’t just a suitcase in the corner. Her clothes were there, along with boxes, luggage and a bunch of her belongings. We had even decorated the room with some of her things because I really wanted her to feel like, for however long she needed it, that was her room.
This part was especially important to me because I’ve been divorced before. This is my second marriage, and I remember how awful it felt to suddenly have your entire life packed into boxes and to feel like you don’t belong anywhere.
Camila wasn’t actually going to be at our house for Christmas because she was spending the holiday with her own family. So technically, the room would be empty.
However, all of her stuff would still be there.
About a week before Christmas, I messaged my in-laws because four people were coming: my MIL, FIL, my husband’s sister (26F), and my MIL’s sister, who is in her late 60s.
I explained the situation and said that, although Camila wouldn’t physically be there over Christmas, the guest room was currently full of her belongings and honestly pretty chaotic. I didn’t think it would be comfortable to try to fit everyone in there.
I gave them a couple of alternatives.
My husband and I could sleep on a mattress on the floor in the office, give our bedroom to my MIL and FIL, and potentially put another mattress somewhere for my SIL and aunt.
Or, I suggested that they could stay in a nearby Airbnb, which they had actually done before we built our current house.
To me, this was a completely normal conversation. Christmas was still happening at our house. I wasn’t uninviting anyone. We would still cook, celebrate, exchange gifts and spend the holiday together. The only issue was sleeping arrangements.
Well.
Shortly after I sent that message, I received a VERY long text from my SIL.
She said she was shocked by our lack of consideration for the family and couldn’t understand how I could put a friend “above family.” According to her, family should have priority at Christmas, especially because they travel four hours to spend it with us, and my friend could simply stay somewhere else.
The tone of the message was honestly pretty unpleasant.
My initial reaction was basically: This is my house. I get to decide who stays in it.
In my mind, even if I wanted to use my guest room to raise horses, that would technically be my decision.
But I also understood that they might have felt rejected or like I was prioritizing someone else over them. And my husband has a very small family, so I really didn’t want this to turn into some huge Christmas conflict.
So I eventually gave in.
I had a very uncomfortable conversation with Camila and gently asked whether, just for the five days my in-laws would be staying with us, she could move her things to her parents’ house.
I hated asking her.
The whole point of giving her that room was that I wanted her to have some stability while everything else in her life was falling apart. I didn’t want her to feel like she was temporarily borrowing a room until someone “more important” needed it.
She agreed and moved her things.
But after Christmas, she decided not to come back.
And honestly, I understood why.
Even though she never blamed me, I think the whole situation made her feel like she had been imposing on us, which was exactly what I had been trying to avoid in the first place.
That’s probably the part that still bothers me the most.
At the same time, I can understand my in-laws’ perspective to an extent. We had agreed that it was our year to host Christmas. They travel about four hours to come to us, and traditionally they stay in our home when they visit.
So now, almost a year later, I’m still wondering:
Was I the asshole for originally prioritizing my best friend’s need for a stable place to stay over giving our guest room to my in-laws for Christmas — even though my friend wasn’t actually going to be there during the holiday?
And does agreeing to host Christmas automatically mean I should have made sure my in-laws could stay in our house?
AITA?

Ps: sorry for any weird English. It’s not my first language, so I used AI to help me translate this. Hopefully it all makes sense!