Not sure how this is supposed to look or work: have a Lufthansa (220-) ticket booked in E (PE) with two US domestic segments on UA metal booked in M. Should this be eligible for a Y/B/M instant upgrade as a 1K?

PN is not available at the moment on either flight. The reservation says "Complimentary Premier Upgrade Requested" and it will allow me to waitlist an RPU/MUA. That feels wrong to me since the M fare should already be waitlisted as higher priority than either, right? A curt 1K agent told me it's "automatically" waitlisted. Should these segments be eligible for a Y/B/M upgrade and, if so, what do I need to ask an agent to do?