You are right in the following sense. The problem is that the kind of an extension described in the exercise cannot exist – the requirements are contradictory. Therefore I find fault with the instructor's argument (assuming they composed the problem themself).
Recapping key steps in your argument:
- It was assumed that $K/\Bbb{Q}$ is abelian. As you observed, this implies that $\Bbb{Q}(\alpha)/\Bbb{Q}$ is a normal extension because $Gal(K/\Bbb{Q}(\alpha)$ is automatically a normal subgroup of $Gal(K/\Bbb{Q})$.
- As the irreducible polynomial $f(x)$ has a zero in the normal extension $\Bbb{Q}(\alpha)$, it follows that $f(x)$ splits completely over $\Bbb{Q}(\alpha)$. Therefore $\Bbb{Q}(\alpha)$ is the splitting field. In other words, $K=\Bbb{Q}(\alpha)$. Hence $[K:\Bbb{Q}]=8$.
Consequently $H=Gal(K/\Bbb{Q}(\alpha))$ is trivial, and cannot have those four elements.
For another approach consider the following. The Galois group $G=Gal(K/\Bbb{Q}(\alpha)$ can be thought of as a transitive subgroup of $S_8$, acting on the set of eight roots of $f(x)$ in $K$. Transitivity is a consequence of irreducibility of $f(x)$. But this implies that $|G|=8$. The argument has been given on our site many times, for example here. Reproducing it only to make this answer self-contained.
- By the orbit-stabilizer theorem the stabilizer $H=\mathrm{Stab}_G(\alpha)$ has index eight in $G$.
- If $\beta$ is some other root of $f(x)$, the stabilizer of $\beta$ is a conjugate of $H$ (a standard property of transitive group actions).
- But $G$ is abelian, so $H$ is the only conjugate of itself. Therefore
$\mathrm{Stab}_G(\beta)=H$ for every other root.
- But the identity automorphism is the only one fixing all the roots of $f(x)$, so $H=\{1_G\}$.
An easy way of fixing this is to drop the assumption that $G$ should be abelian. In that case we can no longer conclude that $K=\Bbb{Q}(\alpha)$. The instructor's argument would then work (and you would have thought of something else).
I would expect the instructor to also recognize the problem, once you explain your argument. Possibly you can ask them to give an example of such a polynomial $f(x)$ :-).
If only I never fumbled like this when designing exercises! Happens easily, when you are in a hurry, and don't have the time to produce examples meeting all the criteria. The worst part is if you forget to make a note to yourself immediately, and reuse the exercise a year later. Been there :-)