So the barrel and rail is considered the upper receiver?
The barrel and rail would be the upper receiver group.
But as far as NFA laws and BATFE are concerned, just the upper receiver piece (which is also the rail) is the heart and soul of the firearm.
EDIT: If you only wish to hydro dip the receiver piece and no part of the barrel, you or they will have to remove the barrel first.
This would entail drilling out the blind pin on the muzzle brake, taking off the muzzle brake, then unscrewing the shroud from the barrel, and pulling out the barrel.
Once hydro dipped, you or they will have to reinstall all that back onto the receiver.