No, we were not seated together as the flight was full.
Our original seats were 2A, 2B, 3A and 3B. Instead we were scattered in rows 6 and 7, the closest rows to economy and crying babies. I picked rows in front because it is further from economy and the galley between rows 4 and 4 is adds another cushion from the noise from economy.
In the end, as per T&C, they can do whatever they want. I'll just claim my seat selection fee back.
Thanks for everyone's comments.