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Correct, and Squatter's Rights are meant to apply to properties abandoned by their owners, i.e. they're meant to prevent absentee landowners from just hoarding buildings wherever and never visiting or maintaining them. Or traditionally, if a property owner has died with no next of kin, or someone believed they inherited a property from a dead relative and this was not contested. Somebody simply hiding in a thoroughly used and very much frequented and maintained building in such a way that they've managed to escape notice for some amount of time doesn't allow them to magically put the deed in their name.
To make a successful claim this woman would have had to occupy the premises for 15 years, or do so for 10 years while also paying the property taxes on it. Further, their occupation has to be "open and notorious," i.e. it cannot be in secret (she failed that requirement right off the bat) and occupation must be exclusive, i.e. others don't have access to the property. That requirement was obviously failed as well.
Relevant statute:
https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-600-5801