Appears this auto upgrade processing at 40 minutes before departure time is in effect. This was announced last month in conjunction with elimination of 500 mile coupons and upgrade order being retained for companion with lower level status at T-24.

Flew a flight out of DCA yesterday and had the upgrade order for my lower level companion reordered since now less than T-24. So ordering preservation and 500 mile coupon elimination is not yet in effect.

I mentioned the upgrade going to automatic without gate agent processing coming, and the AA Club agent said it was in effect at some places.

Myself and companion were #1 and #2 on the list with 3 open F seats. I did not see the gate agent doing any processing - but at exacting T-40 minutes - all three cleared at once. I went to the gate to get new boarding passes and handled the agent our old passes and said "we cleared". The agent did not know what I was talking about - and I had to say we cleared the upgrade list. She then had to go in the computer and look at our name and find our reservation and then print out a new boarding pass. Had to be done separately for each of us looking up by name.

In the past when agent cleared they printed out boarding passes and the gate had them. I guess we could have just redid the pass on the app.

I like the new auto processing. The AA club agent, that indicated it was active, did not appear too please that agents lost control of the upgrades.
This solves the shenanigans and allows you to get new boarding pass before boarding begins.