Rules did change but...
This contradicts everything I have been told about the "Old" and the "New" system (I am not referring to UDU when I say "New").
Note: there are multiple criteria that impact placement on the wait list. I am only referring to how the one criteria of MP Status supposedly works.
I was told by many different sources that with the Old system, the MP status of the upgrade sponsor determined placement on the upgrade wait list even at the airport. At some point it recently changed such that the sponsor's MP status no longer impacting the day of flight, or airport, wait list order and that the airport wait list order was determined by the flyer's MP status.
However, the referenced change should NOT impact the OP until the day of flight Not being adjacent on the advance wait list flies in the face of what I have been told by more than a dozen UA agents and my experience for more than the past 8 years.
I have been the victim of upgrade wait list computer problems and that is what this sounds like to me. But this one seems like agent error. It sounds like somehow someone manually input the SO's status and overwrote the OP's status.
I hope you both clear. Best of luck and happy holidays.