That statement does not make a lot of sense. I am pretty sure they can still give a complementary upgrade to something that is available if they do wish to do that. A member can, for example, request a really nice suite but only that one via SNA. If it is not there but an executive room is free, why not?

It would, in most cases, be appreciated by the guest and the property won't lose much. If they only have 5 suites of that type and they get sold out, why should a guest be denied complimentary upgrade at arrival.

Have never heard this one before. I also immediately checked our systems for any such rulings, haven't found any mentions of that.

I call BS