More information: I was able to replicate the problem. I had failed to choose a product over a certain price point. When I did choose over the price point, it did apply the discount to the gift card.
So the "remove from coupon" option on the product selection isn't working.
Not critical, but need a fix at some point. I know things are hectic there now.
Same login/user/pass as others in paid tech supports. Any time you can spare in next few weeks, most appreciated.
Thanks.