toddlax got lucky. Going back at least five years, any of the 3rd/4th/5th night free promos (no matter how they're booked) have rarely generated a night credit and therefore wouldn't be doubled either. And that's one of the first times I've seen customer service override and give the night credits.
retirementdreams The concierge is right (all eligible rates count, points/certs/paid/corporate rate/AAA rate, etc). But that didn't address the contentious part of this which is that "#th" night free nights aren't an eligible rate and therefore don't count towards status (as a general rule).