Overbooking is common across the industry to help airlines fill planes. The task for revenue managers is to get the balance right so that everyone who turns up is able to travel as booked, which your wife has done.
While the uncertainty can be unsettling, it’s the airline’s responsibility to get you to your destination.
There are a number of factors that would feed into determining who is placed on standby including Exec Club/oneworld status, booking class, prebooked seats, infants/children, number of people in booked etc. If seats are available in other cabins, then some people can be moved to accommodate any overbooking in a particular cabin.