My wife was on EI 123 on monday and was using one of my upgrades - however when she got there they had put in that piece of junk Omni Air 777 and she (and others) were all downgraded. AerClub Concierge line did confirm that my upgrade was returned to my account. I can only assume that something similar happened with your family - i.e change of equipment and less business seats.
Edit: - others got there before me - changed to a 330-200 is appears.