There should be a few new areas in the prison such as library, gym, laundry room, washroom, etc. The new status (“free time”) would allow inmates to roam around in those new areas.
This should all be near each other. I reckon that this area should branch off the CB and would include the things you mentioned above. Free time is a great idea.
In my opinion as well, I think that there should be a Time in SV (Day/Night cycle) and a schedule for statuses.