1. This isn't a new law. The IRS sees all traditional/SEP/SIMPLE IRAs as one account. Therefore, if you had pre-tax and after-tax funds in those accounts then the pro-rata rule applies. This means that with each distribution/ conversion you will have a taxable and nontaxable part.
2. No, the only way to avoid the pro-rata rule is to do reverse rollover where you rollover IRA money to a company plan, like a 401(k). Only pre-tax funds can be rolled from an IRA to a company plan. Therefore, you would isolate the basis and could start the Backdoor Roth procedure fresh. But it only works if your employer allows it, not all plans do.
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