Based on the example you posted above, it looks to me like the Wash Sale Loss Disallowed, was disallowed on the previous transaction that resulted in a loss. The current transaction is the sale of the asset purchased that caused the Wash Sale adjustment. The disallowed loss is now allowed and is reducing the gain on the current transaction. You don't lose your losses due to wash sale adjustments, they are just suspended until you dispose of the asset.
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