It was mentioned by Fiar in another Thread (Website), you can clearly see a Stirge(Bat) in the bottom-right hand corner. Unless its an EinherJar type system, that means these are not BCNM instanced fights.
Now I'm afraid its going to be a VNM System again, And i'll be pissed, cause that system was horrible. Random-upgrades was a bad idea. so not only did you combat terrible drop rates, you combated terrible upgrade rates... One or the other please
Though it could easily be a ZNM system. Trade KC/HKC for Pop item, Go pop NM. SE mentioned wanting to have multiple of the same forced-pop NM Up at a time, It may have been because of this system.