Are there any anons in the Palo Alto area that can go to the building department to get CBF's remodel plans?
Many jurisdictions will put plans on line. I can't find them here. They will be public record.
If the plans show a separate apartment, she lied about the reason for two front doors.
Here's the basic building account.
https://aca.accela.com/PALOALTO/Cap/CapDetail.aspx?Module=Building&capID1=07000&capID2=00000&capID3=02866&agencyCode=PALOALTO&IsToShowInspection
Here's the permit.
https://aca.accela.com/PALOALTO/Report/ShowReport.aspx?Module=Building&reportType=PRINT_PERMIT_SUMMARY_REPORT&reportID=4664&agencyCode=PALOALTO
A few more details. This modification cost $144,000, which is a lot of money to add 735 sq. ft.. The description adds that a bedroom and bath to the house. ~$200 per sq. ft.