Should the K1 show the capital loss in box 11 code c and also show the negative of that amount in box 12 code d?

I do not believe so; you must have entered something else since that is a tax preference item (AMT).

So now the AMT item is gone from the K-1, although I have no idea what I did to put it there or take it away. I entered the amount of money that was distributed but it isn't showing on the K-1, only the capital loss. Any idea where I went wrong?

Go into Forms Mode and check your K-1. See the screenshot in the answer below.

I still don't know if I am seeing the correct information on the K-1s. Proceeds from the sale of the house and car were distributed to the beneficiaries. For tax purposes, there was a capital loss. I entered everything in all the right places within the software. What should I see on the K-1, the capital loss, the distributed proceeds, or both?

What you should not, and will not, see on your K-1 is any distribution of principal (corpus). Your K-1 is only going to show items of income, deductions, gain/loss, credit, and a few informational items.

For example, if the car had a basis of $10k and you sold it for $10k, for a gain of $0, then that $10k distribution (of presumably cash) to the beneficiary would not appear on the K-1.

If the house had a basis of $200k and the estate sold it for $180k, for a loss of $20k, then the K-1 would only show the $20k loss, not the entire proceeds of $180k (again, presumably cash from the sale) that was distributed.

Make sure your Beneficiary's Allocation Smart Worksheet is completed correctly.