In Sing 2, the alligaror said “This is the only club in town” but that makes little sense with how large the city appears so I have 2 possible theories.
Ash could have auditioned to a theatre in a different town. As she wants to perform seriously, it’s possible she chose that in order to further her career.
2. The alligator meant “only live music club”
This one is more likely as Buster mentioned to Rosita he was reading to [her] mean Ash’s place right now. So it’s likely they all knew where Ash’s place was and where she performed.
If Ash is more interested in music than performing she might have focused on her career and if the city is as big as it seems, it’s more likely they have both a theatre and live music club.
Overall, I think the second one is more likely but the line just made me think so I wanted to share my thoughts