Yes. There is a threshold for category upgrade and a slightly higher threshold WTRL use for DQ.
If you hit the upgrade threshold without going over the DQ threshold, your points stand but you can't carry on with that team. If you go over both, you get DQed as well.
For example in C --> B it's something like 3.36 zFTP but if you do 3.4 you can upgrade without DQ. If you do 3.5 you're DQed as well.
(Those numbers may not be exactly spot-on, but you get the idea).
