Unfortunately AA seems to have no idea how to fix this issue, other than cancelling the ticket and rebooking. Called just now and agent said help desk told her to advise me to reach out to Qatar

Explaining that AA as the issuing carrier needs to show the baggage allowance from their end fell on deaf ears.
You may want to do some googling on this, because this issue is not new, also happened to AA issued tickets on flying EY. It can be fixed but rather convoluted process IIRC. Bloggers wrote about this at the time the issues were rampant. If you were able to unearth those info then armed with such, call AA again.
Curious if the OP had paid the $1500 checked bag fees so they could fly, how much luck they would have had in getting reimbursed by AA because this was a mistake on their end.
Reread OP's first post. He did not pay but canceled the AA award. At the end they flew another program's award tickets in J.