"Is there anything I can do to get this fixed?"
Do what? Kick out the other students? Every college curriculum I have ever been enrolled in it is first come first served for the classes you want. That is why you enroll early.
"To me this is false advertising and they did not tell me this would happen up front."
Every college has a statement in their handbook somewhere that some classes are "popular" and some instructors are "popular" and their classes fill quickly and students are encouraged to look at their schedule and plan accordingly. It also states the school is not responsible. How would the school be able to predict up front when a teacher's schedule is going to have to change? If you look in that handbook I am sure there is a statement in there that says "class schedules subject to change" too.
"Are schools allowed to do this?"
Yes. They provide the classes. As long as you get the classes it isn't misleading or false. Just because you don't get them when YOU want them doesn't make it false advertising, misleading, or fraud. Three months isn't going to be that huge of a deal in completing the program. You would spend more money in attorney's fees fighting it.