It seems they are using the same name, "Full Fibre Max", for two different services - one delivered on GPON and one on XGS-PON. Which one you get depends on what the network supports at the time you place your order.
If you're already on "Full Fibre Max", you can't upgrade or recontract to "Full Fibre Max". Even though you may be on "Full Fibre Max (GPON)" and want to upgrade to "Full Fibre Max (XGS-PON)".
The "they" here being Zen, on the CityFibre side they are two separate products and they have things setup so ISPs can place an order to move from one to the other. The ONT swap would be detected as required and the order would require an appointment, the ISP is not typically charged for the ONT change. This is very similar to on GPON when a customer moved to the 1.6G product but had the old 1GE ONT.
They *will* let you move from GPON to XGS-PON, but they charge for the ONT swap.
It seems more like Zen have not got their systems setup to enable the change as they have put both as the same product on their side, so there is no journey in their system to move to the faster XGS-PON product on CityFibre.
The charge sounds either like they are looking at forcing an ONT replacement (fault route) or using the ONT move option with CityFibre. Both of which are likely to result in a replacement GP1000G. A move to XGS-PON needs the end user to be moved to the XGS-PON port/OLT as well.
To move to XGS-PON today Zen would need to place an order to move the original poster to the XGS-PON product and that will trigger everything needed, but it sounds like they don't know how to/are not able to do that.
As mentioned earlier on Calix ONTs the G = GPON you need one of the XGS-PON ONTs either a Calix model ending in X or a Nokia ONT as CityFibre use both.