I would find somewhere else to live.
To his credit, he is being a good dad. But because of the living situation there aren't enough beds to go around. His daughter wanting her dad is not unreasonable. She is only 9 and 'lost' her dad to a divorce.
At the same time, your desire to have a place to sleep and work is not unreasonable. So, again, I would move out until the living situation changes. You will get your needs met (i.e. privacy, your own space) and kiddos' relationship to dad will not suffer.
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