Because of her misleading the parents of these babies. She wasn't keeping the bodies at the recommended temperatures so they would be deteriorating much faster than if she did. That is also a health hazard.
She also had dogs and cats around them which is awful. Some of them could even begin eating the bodies as they would view them as food.
Yes, she needs closed down if she isn't going to do things according to the professional code of conduct even if technically no crime has been committed.
I think they funeral director industry does need to be regulated. Urgently. This isn't the first time problems have occurred and when they do it is horrendous for all affected. Not to mention the public health hazard.