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Intl SWU priority: Status or Fare Class?

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Just got back from Bangalore and on my outbound IAD-FRA I requested an upgrade using a SWU on a "Q" class and was told I was #6 on the list. I asked if everyone ahead of me was a 1K or GS and the agent said, "No, #'s 4 & 5 are just Premier (* Silver) but they are on a "U" class ticket and fare class takes priority over status on Intl flights." I had her confirm with a supervisor and got the same answer.

Is this new? I had always thought it went Status, then fare class and then when the upgrade was requested.

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