It's sad in the 21st century that nobody is allowed to make decisions any more without a 'policy'. The end result will be a jobsworth attitude of "it's not worth me trying to do a nice thing any more as I'm damned if I do and damned if I don't". I suspect the flight deck suggested they move after the FD visit and the service wasn't set up or briefed to operate with the F cabin operating plus the CSM probably thought they were doing everyone a favour - giving the hen party run of the F cabin and the J cabin quiet! CSM should have stayed cool but it sounds like they were facing a cross examination and became assertive at that point, as I believe they are trained to when dealing with operational matters. Thing is if you make an exception for Mr Gold you begin a mass exodus which in itself becomes disruptive with people retrieving hand luggage and so on.
Captain and csm will say they weren't upgraded they were given a seat change for operational reasons. They were a hen party and the crew wanted to monitor their alcohol consumption and keep the CW zone quiet to avoid complaints especially as it was a breakfast flight and had some shiny card holders who wanted to take advantage of the flat beds. The customer concerned became aggressive when spoken to.