YABU - providing that everyone is accommodated appropriately (ie nobody is overcrowded) then "extra" space is provided based on employers discretion, availability and practicality.
When I first moved abroad after Uni, ExDH and I both got a job in the same company and accommodation was included as part of the deal. Usually this accommodation was shared with other employees in shared flats but they did have some studios and a few 2/3bed flats for couples/families.
Accommodation was assigned based on requirements when you took the job and seniority - if you were single then you'd probably be allocated a room in a shared flat; a couple would get a studio and a family one of the 2/3bed flats. If you were hired at a managerial level you would automatically be allocated a studio or private flat regardless of whether you were single/couple/family.
However, once accommodation was assigned then the company was under no obligation to give you larger/different accommodation just because you wanted more space provided you were still adequately housed. If you were a couple with a child in a 2 bed flat, you would not automatically get a larger flat just because you had a second child as you would still have adequate bedrooms. Equally, accommodation was assigned on availability, so if you were a couple with 2 children and all that was available was a 2 bed then that is what would be provided, if a 3 bed became available during your contract there was no obligation to move you and if a couple with a single child arrived and that 3 bed was all that was available then they would get that flat even though you had more people in your family.
If you outgrew your accommodation then you could apply to move but it was based on need and availability not want, so if you were a couple in a studio flat who had a child, you could apply to switch. If there was a 2 bed sitting vacant you would get that but if all they had available was a 3 bed then they would move you there, even if there were other couples with two children living in 2 bed accommodation. If both the couple and the family were applying for a switch at the same time then they would usually move the couple to the 2 bed and the family to the 3 bed as it made most practical sense but there was no guarantee.