Remember Palazzo/Venetian only earn a flat 2000 IHG points no matter how many nights you book and no matter how much you spend on the room rate. In the past I’ve booked on Palazzo and/or Venetian sites rather than IHG. Those nights were non qualifying, including no 2000 points. I did it because the rate was much lower than the rate on IHG, so it wasn’t worth it to me to spend more money.
As an Ambassador I’ve received an upgrade to a view of the pools under heavy construction with rooftops and HVAC units. I’ve also received upgrades to the huge 1 bedroom suites when they don’t have anything lesser available to upgrade one level. It all depends on ?, you never know. Honestly all the rooms are nice, Likely the best standard rooms of any IC.