Then it can't go into WL since the current available status is Avbl 1 in 2 AC in lower birth quota. LB quota will not have a waiting list at all. It will be either AVBL or NOT AVBL. Once the LB quota is completely booked, it will go into GN quota by default. It will not be released even if someone whose ticket is in LB quota cancels it. Which means the LB quota is still not completely taken.
Looks like both the tickets are under same PNR. Lower birth quota is applicable only if travelling individually without any company. It will be good if he sees my comments asap before someone takes the available berth..