I had a similar experience although I ended up cancelling the particular booking prior to ticketing.

I had reserved an M fare for CPH-MCO via ATL and used 50,000 points for a Z upgrade. The booking only showed me confirmed in BE on the TATL and still in coach for the domestic portion.

I would have questioned it if I had held the booking, but ended up not going through with it. Not sure if this is standard policy, but it's a lot of points to use, and a high fare to pay, if they won't even give you FC on the domestic leg.

Susan