I have no clue what the heck happened. When I made the reservation over the phone with AA, they gave me the AA reservation number and the Iberia reservation number.

Once the booking was ticketed, I went on the Iberia website and picked my seats. I was seat 9a my gf was seat 9b. You could see my reservation and my seat numbers on the AA app. I also had a print out from the Iberia website that showed my seat #'s and that my booking status was "confirmed".

I have pictures of all of this on my phone and will upload them here if there is a way to do so. I was so irritated when I found out I was on standby.. Luckily we got picked and made it to Portugal, but I'm in fear my next reservation with Iberia, which is this Wednesday, to Copenhagen is going to have the same issues. What a night mare!!!