After a couple of back and forths about asking Marriott Reservations I finally got this reply from them:

" Thank you for your email,

The inventory for points booking is not managed by property directly, hence incase the room is not available under the points than the same has been closed for the points booking and the room category is unavailble to book.

We are pleased to offer upgrade for the full stay with the upgrade supliment provided below in our earlier email.



Should you require anything else please do not hesitate to contact us.

"
Both marriott and the property seems to be passing the blame to each other. I thought the property decided which rooms would be available on points.

I was quoted $400++ per night now as I have an earlier email by them which quotes $250++. The only reason I was leaning towards the W is the private dinner in their private island Gaathafushi. [MENTION=446683]Starwood Lurker IV[/MENTION] - can you please investigate if W Maldives is no longer offering points upgrades to Overwater villas?