Seems simple and clear to me...
Translating all the above seems to confirm:
To be confirmed for eUpgrade prior to check-in:
-Top Tier customer and Companion/Nominees eligible for R class will be confirmed, or upgraded from WL, as per the status (and booking window) of the Sponsor.
-A travel Companion must be booked on the Sponsor's PNR.
-All travellers on a PNR must be booked in the same booking class, whatever the cabin. Hence, if unable to confirm and there are 2 people on a PNR on WL for the upgrade, if only 1 R seat later becomes available, it will not clear anyone on that PNR.
Once the waitlist passes to gate control (standby for upgrade after check-in):
-Upgrade pecking order will be in accordance with each individual's status.