It's glitched. There are some work arounds that include ridiculous things like adding 16 med clinics but personally I'm going to wait for a patch.
unfortunately settlements are quite bugged
the worst one for me is abernathy farm
i have 10 settlers 15 beds, but whenever im not there if i go into workshops in pipboy theres an exclamation mark next to abernathy farm and it says i have 0 beds so happiness plummets
very annoying but hopefully patched soon
I did not see happiness level doing anything. It's not that it increases farming output or something. Why bother?