If the OP's profile is correct they are falling foul of the last sentence in point 2 of the rules for MFU on BA.com?
http://www.britishairways.com/travel..._gb?sl=upgrade
Originally Posted by ba.com
2. Miles for Upgrade is permitted on eligible British Airways published fares only (Fare classes are: J, C, D, R, I, W, E, T, Y, B, H) but is not permitted on bookings made with a travel agent. Miles for Upgrade is not permitted where flights are sold as part of a package holiday or where flights and ground arrangements, such as prepaid hotels, cars, transfers and experiences, are booked and paid for in the same transaction. Flights booked and paid for separately from any ground arrangements remain eligible for Miles for Upgrade. Miles for Upgrade can only be applied to bookings which are made in the member's Executive Club membership country.