According to IRS Publication 970 (2024), page 20 :

IF you...
don't claim on your tax return a dependent who is an eligible student (even if entitled to claim the dependent)

Then only...
the dependent can claim the American Opportunity Credit.
You can't claim the credit based on this dependent's expenses.

This suggests the answer is yes — the dependent can claim the AOC, provided they are not actually claimed on another return.

However, in ProConnect, when I check the box that the dependent "can be claimed," the AOC is turned off for the dependent’s return.

Question:
Is this correct behavior per IRS rules, or is it a ProConnect software bug? If it's a bug, what is the best workaround?