"on form 1065 Sch D, form 8949 or 4797 would show a wash of the transaction"

I don't see how any of these forms apply. You stated, "The Ptnrship recorded the land purchase price as a draw by the ptnrs." and that would mean they bought the land as Personal. That means, once the money was removed, there is no further involvement for the partnership. No Sched D, no form 8949 or 4797 for any of this activity.

The partnership didn't own land it supposedly sold on the 1099-S.

The S Corp didn't own it, either.

Using a nominee process isn't wrong. Understanding what really happened here, is what needs to be mapped.

I recommend finding local mentoring on this. Everyone has made a mess.