yeah they refused to do that. there is no visa exempt, just a toursit visa in an expired passport. it is being amended but it just means further stay and hassle in KL.
On a visa exempt i do not think you can extend within thailand to another visa as you technically have no visa. It is for people that are coming in for a short trip, like a tourist.
They bloody refused to put the tourist visa stamp into his new passport for some reason. Now he cannot get his flight back as he has to faff around getting supporting documents from various departments, just so he can come back to Thailand!