I believe the last situation like this I heard about (fairly recently) occurred at VWL and they were walked to a regular room at GC with compensation. I don't remember the details.
I suspect it's a question of who's running the show. At the resorts with hotels (BWV, BCV, VWL, AKV), I assume the front desk is a
hotel function, for which they receive compensation from
DVC.
If that's the case, it has to be tempting for the hotel to "walk" a points stay in order to accommodate a cash guest paying big bucks (to the
hotel, hello...) for a deluxe DVC suite. I have no evidence to support my theory, but I've had enough dealings with hotels to be suspicious along those lines.