I'm on a flight LAX-MAD, AA codeshare operated by Iberia. I have a business class ticket and am OW Emerald. On my first call to Iberia, they told me I had to select a seat on the website. However, the website asks for payment. I called back and spoke to a different agent. I explained that I had a business ticket and was OW Emerald and didn't understand why I couldn't get a seat assignment for free. He checked with a supervisor and pre-reserved a seat for me. My booking now shows that a balance is due for the seat selection. The agent said not to worry about it and when I do online check-in (or at the airport), the seat will still be held for me and I won't be charged. He apologized for the clunky work around but said my seat will be reserved this way.
Hoping when the departure day arrives, I'll still have the seat I requested.