Unable to restrict in app purchases

I am confused on how the restriction regarding Allowed Content works. I have an original iPhone with no carrier service (no sim installed either), that I let my niece use on WiFi. I want to allow her to download free apps but not allow for purchasing upgrades through the "in app" feature. Restrictions are enabled, Installing Apps is "on", and under Allowed Content, I turned "In-app Purchases" Off. Nonetheless, from a free app, it is possible to purchase the paid upgrade. I could use an account that has no payment info, but I would like to be able to use this restriction with my regular account that does have payment info. Perhaps I am not understanding how the in-app feature works.

I received my answer from iTunes customer support. It is:
"In-app purchases refer to additional content for an app that has already been purchased. Examples include new levels, weapons, and game features. Upgrading to the full version of a free app is not considered an in-app purchase. Most free apps have links to purchase their full versions."
I sent a feedback request to ask that the restrictions in app purchases include the ability to restrict going from a free app to a paid upgraded one.

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