passive losses being suspended in year of disposition

[TaxAmy]

Filing a 1041 for a trust for a decedent.  The trust disposed of a passive activity in 2023 at a loss, also had operating losses for 2023 and c/o losses from prior years.  Checked the box that the K-1 was final.  TT is not allowing the losses.  The activity was disposed of, but TT is still suspending the losses.  Support couldn't help.  Passive losses should offset non-passive income in the year of disposal.  This is also the termination year of the trust.  TT doesn't allow the losses, or pass them out to the beneficiaries.

[TaxAmy]

When a passive activity is distributed to beneficiaries, the PAL is attached to basis of that asset.  The passive activity was sold.  There is no remaining asset in the trust other than cash.  Can't add basis to cash that was distributed.  TT is reporting income from the trust (unrelated to the LLC -portfolio, etc.) and suspended losses.  The PALs and capital losses flowing through the LLC simply evaporate- not offseting other trust income?