IIRC, Ulfric wasn't the one who let the Dunmer into the city. It was one of the previous Jarls back when Red Mountain blew up.
So I always assumed it was just a refugee problem he inherited, and either couldn't or didn't care enough to deal with while he was fighting the Empire.
Inheriting is an understatement. The Red Year happened
200 years ago. Its not even a refugee problem anymore at that point. Its like saying the great-great grandson of a slave moving from Atlanta to NYC is fleeing the plantation and has to worry about whether or not the state will throw him to the slave-catchers.
The new Dunmer capital of Blacklight is closer to Windhelm than Riften is but they're just content to sit in the Gray Quarter and bitch for two centuries?
Ambarys Rendar has dialogue that suggests he and most of the other Dunmer moved to Windhelm when the Red Year happened, but the game acts like anything to do with the Red Year happened 10 years ago instead of 200. Fucking
ALTMER are living in the city completely unmolested by the Nords but the game wants me to believe that the Dunmer are just sooooo oppressed? If the city that gave refuge to the Dunmer is so bad then
leave. Ambarys outright says that if he'd known the Nords would be so mean then he'd have found somewhere else to live, so why doesn't he?
Speaking of the Altmer in Windhelm,
one actually talks about the Dunmer and the difficulties of living in Windhelm.
"It was difficult at first. The Nords of this city are, at best, suspicious of outsiders. But in time, I made the right friends and proved myself useful enough that they don't give me trouble anymore. The dark elves are too proud and naive to understand the way things truly are, and so they continue to dwell in that slum."
She moved to Windhelm, got some mild pushback for being a foreigner, then integrated and proved herself a competent and valuable member of the community. The Dunmer make absolutely no attempt to integrate and yet they wonder why the city isn't bending over backwards to appease their every whim during a war.
I don't think they ever actually explain what the deal with the Argonians is. If they did I never noticed it. You'd think if they hate it there so much they'd just fuck off back to Black Marsh and hang out with the Hist or something.
There are what, four Argonians? The game says that Ulfric doesn't let them in because he's mean, but Brunwulf also doesn't let them in. Brunwulf says that he doesn't want to let the Argonians in because he's worried the Nords will kill them. The Dunmer living in the city either lived through the Red Year or had parents who did, but they aren't even so much as
mentioned when talking about the Argonians being kept outside. Granted, its been 200 years but the Dunmer have also been content to sit in a slum and whine for 200 years.
Of course, the Red Year and Windhelm being completely fumbled makes sense. Bethesda can't fathom people 200 years after the bombs drop living in anything other than a house with half the walls missing and skeletons on the furniture, but tried to write a 200-year refugee crisis inside of a civil war.