It got sold off, at a massive discount, to a different distributer who decided to put it in theaters. Your solution is to punish the people that took a risk on a movie that another studio decided (for bullshit reasons) wasn't good enough to release.

That's not how any of that works. Any expense is a tax write off. Income/revenue is what is taxed. Them selling it off at a discount is what turned it into a tax write off, which is still a loss. The revenue is generated by those who bought it for cheap. And that is taxed like it normally would be, which probably isn't high enough, but taxed nonetheless.

sold to a different company in the same fashion sony sold Kpop Demon Hunters to Netflix and Netflix reaped the rewards for the movie popping off.

The part I think you are missing is that they didn't write off the entire cost of the movie. They sold the rights to the movie for less than it cost to produce, and wrote off the difference of the sale price and the cost of production. This is a normal feature of the tax system. If you buy a stock for $15 and sell it for $10, you only have to pay tax on the $10 you sold it for, you get to write the $5 off as a loss. If a company spends money on operation, they don't get taxed on that cost. If a company makes 2 million dollars, but to do so they had to pay their employees a total of 1.5 million dollars, the company itself only pays taxes on the $500k.