I saw a few topics that said the hair salon is not very functional- I'm not particularly sure what that means. Is it that I'm only able to have new hair from wig items?
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Eventually we should be able to use the hair salon properly again. The current version of the wardrobe is still pretty new, and the hair salon in particular has been having a lot of bugs that the programmers have been trying to sort out, so it's not very functional right now, but hopefully it will be again soon.
You can try to use the hair salon and check the threads in Problems & Bugs to help report anything you come across that's not working properly. Or you can just wear wig items in the meantime while they work on getting it working better.
Thanks for the reply! How do you use the hair salon? I managed to figure out how to get to the free ones (which works for me) but how do you unlock the locked ones? Or is that what's currently not working?
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Most of the locked ones are from various hair coupons and other redeemable wigs typically sold in the Cash Shop.
If you search for the name of the hairstyle on Subetalodge, you should be able to find the wig item that you need to redeem in order to unlock the hairstyle. Doing that will remove the item from your account, but will give you access to the hairstyle in the salon where you can set the colors that you want to use.
I think most of the bugs have to do with colors and highlights not showing correctly, or sometimes the hairstyles won't stay on people's HAs after saving their outfit.