From American's Program Description:
At the time the Program Manager is notified by either the UGMA/UTMA custodian or the Beneficiary that the Beneficiary has reached the age of majority, the Beneficiary will become the Account Owner.
Does this sound like the account owner has been the beneficiary all along? You've been misinformed.
While American has become the largest 529 plan, they are by no means the most capable/knowledgable when it comes to 529.