I don’t understand what you are doing there, but the use cases for Grid Fill and Subdivision Surface are completely diferent.
Grid fill fills a hole (needs an even number of Vertices), for instance:
Subdivision Surface won’t do anything in this case, because there is no surface. If you first try to Fill this hole with an N-gon with ‘F’, and then use Subsurf, you’d get this kind of abomination:
Like I said, I don’t know what you did, because Grid Fill doesn’t work on a 5-sided circle (and is not meant to subdivide an N-gon anyway, although it might work when you have an even number of Verts…).)