I am not familiar with the use of the word “squat” as a noun in English, so the English sentence here “…lives in a squat.” makes no sense to me.
Is this related to the term “squatting” or “squatter”, i.e. to live (illegally and off the record) in an abandoned house? I’m a little confused because the term “besetzen” usually means “occupied”, and a squatter is generally someone who lives in a building that is not otherwise occupied, but perhaps the logic is different if it is interpreted to mean that the squatter themselves is “occupying” the house?
At any rate I had trouble figuring out what this means, I think it means “My father is a squatter.” but I’m not 100% sure and I would like confirmation from a native speaker!!! Thanks!