Yes, it is definitely treating my business as QBI.
I found this paragraph from this article: https://www.bdo.com/insights/tax/federal-tax/final-regulations-of-section-199a#:~:text=Items%20Treat...
Under the final regulations, taxpayers must first net their Section 1231 gains and losses in order to determine whether the amounts will be treated as a capital gain or ordinary loss. If the net result is an excess gain, the character of the gain is capital and is excluded from QBI. If the net result is an excess loss, the character of the loss is ordinary and reduces QBI.
Could this be the reason?
