Booking ord-lhr trying to redeem my 6 GPU's

I'm trying to book a ticket, not award, but pay for to see my mom for her
70th bday in September. I have 6 GPU's and want to redeem them. I think I clicked on the right link but it shows this after I get to final pay screen:

Purchase Summary
Ticket Price

1 Adults (age 18 to 64)

$809.00

1 Upgrade Reward(s)

40,000 Miles

Additional taxes/fees

$229.10

Reward Upgrade Service Fee

$1,100.00

Airport Passenger Duty

$100.00

Total Price

40,000 Miles and $2,238.10

Question #1. Why aren't I prompted to use my GPU's?
#2. What in god's name is that $1100 service fee? The initial ticket was pricing at $1002 all in and it indicated upgrades were available but I don't understand that $1K service fee? :td:

Any advice is appreciated.

Thanks