With a final K-1, I check the box noted as Final K-1, The partnership was closed and remaining cash distributed. I then checked the box "Partnership was discontinued in 2019" - it reflects an error in Part II for disposition of Partnership Interest which does not appear to applicable
Your client may have basis in the investment that could be used as a capital loss, even if they didn't get anything from the disposition, thats why its prompting you to fill out the disposal info.
