Comment

Ordinary losses get netted against rental income when it's a partnership to individual so if it's the same in a trust (I have a partnership where the owners are 50% an individual & 50% a trust)  In looking at the trust input in the individual return it's doing the exact same thing the K-1 from the partnership is doing when going directly to the partner.  It worked fine in 2021 & 2022.  This is another mess up by Lacerte for 2023.

You might try ignoring the critical diagnostic by disabling the efile error and see if you can file that way.