I had the same experience recently. I've stayed here 4 times in the last 4 years, and always gotten at least something of a water view. This time on a The Hotel Collection + Globalist stay, they said they were sold out of anything better than a King City View (not even "deluxe") even though the app said King Water View Deluxe and King City View Deluxe rooms were available.

They also remain stingy and inconsistent with breakfast, saying you get "$60 for breakfast for 2 people", but only sometimes taking off small overages, even though those overages come from the involuntary ~20% service fee they charge on breakfast, even though that service see should be the included tip per WOH terms. $60 doesn't even cover 2 of their lower-cost entree options and 2 coffee/tea. Also had some issues with breakfast items (their $18 waffle is worse than what you'd get from a Golden Waffle maker at a Best Western) and gave feedback about the room and breakfast situations when they emailed about my stay. FD manager offered 10k points compensation, though that hasn't hit my account a week later. He said they'd "look into" why inventory on the app doesn't match what's actually available, but I assume it's intentional attempt to sell those rooms. It was Emerald City Comic Con weekend, so they were probably hoping for last minute bookings there especially. The hotel didn't feel particularly busy, though, and I'd gotten 2 nights for $350 total through THC booking about a month and a half ago, so nightly rates were quite low.

I will say we had a great experience at The Nest. Their cocktail program is shockingly good these days, as was the service. I was happy to blow the $100 THC credit there.