Thanks:

How did they get to a negative $2M? OP: They had a large loss in 2021 of about $1.7m. 

How did all of the debts get paid off or are they still hanging there to be recognized as forgiveness of debt income or are the partners paying them off personally? OP: The debts are still their, and likely to be forgiven on the sale of the LLC. My understanding is that these forgive debts will be taxable income to member, and taxed at Long Term Capital Gains tax rates. 

But I am lost on what happens to Negative Capital Account balance. 

Thanks.