Currently having a disagreement with GC on a missing stay claim.

"We are sorry for the delay in our reply to you.
We checked and understand that you had two room reservation at Hotel Jen **** from 11-12 September 2015. One was made by redeeming your GC Award Points for free night's redemption and the second booking was made under the advance purchase rate.
The booking under redemption was under your name and attached to your membership profile. Kindly allow us to clarify that that Golden Circle is an individual guest recognition programme and only the room which is physically occupied by a member will be taken into account towards that member's stay record.
Therefore, we are sorry to inform that we are unable to credit the second room (as per the invoice attached ) to your membership profile. In future, if you would like to have two rooms during a stay period, and yet would still like to utilize your points for room redemption, you may book the room under your nominee (for redemption) and another room under your name (qualifying room rate). By this, you would be able to earn points on the room you booked under your name and under a qualifying rate. Your kind understanding is highly appreciated."

I can accept that the room booked under a GC Award Points redemption would not qualify for a stay record. But the other room booked under the advance purchase rate should be a qualifying stay record.

Is my understanding wrong ?