You're not overreacting. The GM did almost the same with me at the Grand Cypress. Said his staff was correct and I was wrong - when I clearly knew the GP program better than any of them.
I escalated to Consumer Affairs, and managed to get a free night out of it.
I stayed there to use the free night and I haven't been back since - and I used to go there 2-3 times a year. I now pay more and stay at Disney - with no regrets at all.
I won't go back to that hotel as long as that GM is there.