Even if it is above-ground, it is going to be heavily enclosed with small
windows. Unless plexiglass domes can do the trick.

The people who go to the Moon will know, understand, and accept the
risks and discomforts of being among the first to colonize the place.
This includes living in rather close, covered quarters.

I am sure they will enjoy numerous excursions on the lunar surface, though.

How do people who live in Antarctica manage? Yes, I know they can
go outside technically, but most of the time they have to remain indoors
and they need to heavily suit up when exploring the countryside. And
that hasn't stopped people from living there year-round.