While I never like to see a customer or company rep call each other liars, it appears as though - in this case - the customer was appropriate in this description of the situation.
Fighting for "promised" benefits should not have to happen... and that is one reason I have stopped working for status in programs. It is not worth the cost to only have to then beg for what was promised by the program.
It is clear that this is an ongoing issue with this property and apparently SPG is willing to let it continue. I am just surprised so many top customers here continue to give this hotel their business in light of their treatment of top elites.