Have you tried looking at the family tree, to see exactly where she fits in? Because I wonder if it made her the daughter of Dennis Kim. Except no... that makes her a sister-in-law, or maybe no relation with Alice gone.
But I have seen some wonky stuff with family trees. In San Sequoia, from the Growing Together pack, there's a household of Eleanor Sullivan (the white-haired old lady who wants to help you with your infants all the time), Xochitl Luna, and Xochitl's daughter Karmine. Eleanor and Xochitl do not show as related in any way, although I never thought to check from Karmine to see if it shows her as her grandmother. I had my created sim marry Xochitl, and Eleanor became my sim's mother! Maybe Eleanor is supposed to be Xochitl's mother-in-law, and then it decided that if she's my wife's mother-in-law, she must be my mother?