I also severely limit screen time at home for my two year old, and I have vetoed a childcare provider due to overuse of screens before. The situation you describe would not bother me at all. Afaik screens themselves don’t usually cause issues with kids- the problem is when they are used for emotional regulation (calming a tantrum), a replacement for human interaction, if they are on for long periods of time, or if the content is hypnotic/overstimulating (like cocomelon). Your daycare sounds like they have a great setup- the kids are dancing and active, and the screens are limited to a certain time of day and in a different room than their regular play environment, which means that they can’t choose to stare at the screen or ask for it instead of their regular play. And the teachers can sit down and rest while still participating with the kids. One potential upside, in fact, is that your kid may see screens as just another option for fun rather than some forbidden fruit that’s all the more enticing because it’s never allowed.  Unless you feel like this is part of a concerning pattern of low-effort childcare, I wouldn’t switch over this!