@yaakov doe
That doesnt make sense on 2 levels.
First of all, it means the person flying fist class on this miles ticket won’t earn miles on their flight, as one does not earn miles on a rewards ticket. Few people willing to shell out for a 1st class ticket will do so without getting miles in return.
Secondly, and I am telling you this from 1st hand experience, should the flight get cancelled, the person who bought this ticket from the travel agent would basically lose their money. If you have a miles ticket and your flight gets cancelled, you get your miles back. You would not get back the money you gave your travel agent, unless the agent themselves gave it back to you.
But either way you’d be stuck without a ticket.