My stay at Park Hyatt Milan just posted, checking in on 2 Jan and departing on 4 Jan. 2 separate reservations, one night was P+C and the other was the Cat 1-7 night all Diamonds got last March. My account shows 1 night credited ... I'll call next week.
AFAIK, that's right. I think that it's the points-based nights that count, but not the nights from these types of awards.