This is a Air Canada issue not a Singapore airlines or their Kris flyer program since it's AC operated and their policies and SQ has no power over that so giving you the miles is a generous offer since they had no control on the bag fees
I am a Singapore airlines pps card member (highest level of Kris flyer) and while I expect certain things from SQ I know and understand that other airlines even codeshare on the other carrier has different policies that must be followed
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