you are not correct. s-corp losses are deducted in arriving at adjusted gross income (form 1040 line 11). the standard deduction is a deduction to reduce adjusted gross income to taxable income (form 1040 line 15). in other words, these are two separate deductions, you get both (but see below). don't know what you've done in prior years but the S-corp files a tax return and reports the profit or loss to the shareholders on the 1120-S k-1. this is entered in your 1040 and the profit/loss should appear on schedule E page 2 and carry to schedule 1 line 5
starting with 2021 you were supposed to include form 7203 with your 1040 to report your tax basis when you report an S-Corp loss. those losses are only deductible to the extent you have tax basis. evidently, some enough taxpayers didn't follow this rule so the IRS wants to check this. the 7203 in Turbotax didn't work last year to limit losses to tax basis and doesn't seem to be working in 2022. the only way to limit losses if there's a lack of basis was to complete form 6198.
if the corp has no tax basis in property and equipment and no credit card debt, your basis on 1/1/2022 would likely be the cask at the end of 2021.
