Because the loan was current prior to leaving the company, the loan should have been satisfied with an offset distribution, reported with code M in box 7 of the Form 1099-R, not a deemed distribution (code L). You have until the due date of your 2022 tax return, including extensions, to come up with the funds a complete a rollover to an IRA or another qualified retirement account of an offset distribution and continue to defer taxes on these funds. An offset distribution is not a default of the loan.
If the Form 1099-R has code L, I would contact the plan to find out why they did not process this as an offset distribution. A deemed distribution does not satisfy the loan and the loan still must be repaid, but any repayments become after-tax basis in the 401(k).
