Tried again this evening - all current reservations show 'not eligible' and any attempt to make a new reservation with a discount org code is also showing not eligible.
Usually the 'web errors' tend to clear within a day - I'm starting to wonder if this is going to be a new policy. If so I'm sure many of use will be considering future choice hotel activity. I just set up a parallel points reservation to my next vacation stay. If this doesn't clear up I'll cancel the paid one and start looking to burn off my balance. If I can't earn points then its time burn the balance off.