I have the same issue.  Yes, it's disallowing Sec 179 but it's not calculating VA depreciation on those Sec 179 assets.  Seems like it should be reflected on Line 14 of the Form 502.  Otherwise all depreciation is lost on those assets.

Same thing occurs if you select Bonus depreciation on those assets.  Lacerte adds it back on line 8 of the 502 but does not calculate any line 14 depreciation on those assets.