I think Kroger is cracking down on using visa/mc gift cards for purchasing other gift cards in store. A few months ago I could do unlimited transactions processing it as a credit card, last month I was limited to 2 transactions total, now it just kept denying my transaction. I was able to use the visa/mc gift card to purchase groceries only, but when I tried to check out with gc's, it would not process my payment.
I know most stores have a policy where you can't buy another gift card with a store gift card, but it seems Kroger is extending this to any type of gift card.
*I would purchase the visa GC at Office depot to get 5x Chase rewards, then I would purchase the disney gift card at kroger when they have 4x fuel rewards to try and maximize my discount