I know this is going to sound cold but no it does not need to be changed outThe dead bolt does not latch unless someone locks you in with a key from the outside. The room was not designed for a WC user therefore you do not belong in it. Does it have the turning space? Is there enough clearance on the latch side of the door. The point is the room was not designed to be occupied by a WC user or anyone else so means of egress door requirements do not apply and a round door knob would be code compliants