I may have missed the point. What's the big deal if he has "never heard anyone refer to an upgrade with a code"? Just because HE hasn't heard of it, doesn't mean it doesn't happen, nor does it make the LAX 1K room a bad place to be...
I've never seen anybody get a double upgrade, nor have I seen any employees in first class...
For anyone who finds the LAX 1K room a "waste of time," feel free to hang out anywhere else in the vast LAX UA property spanning 3 terminals. The 1K staff are busy enough as it is dealing with friendly passengers...
Oh, and thanks
UAL Traveler for the explanation.