The TCJA back in 2018 or whatever is what extended the due date for correcting the offset in order to avoid taxation and penalty by the IRS. So if they just offset it now, you'd have until April 15th, 2023.

You must deposit the full amount of the unpaid loan into another qualified plan.

The easiest thing to do would be to deposit it to an IRA. Whether you use a traditional or Roth IRA, or both, depends on what tax source the loan was taken from. The specifics of how you inform them and get them to allow this contribution (because normally they would limit you to the $6,000 / year) as an indirect rollover would be something you need to ask that provider.

Not a tax expert, but you would have the 1099-R reporting the distribution of the loan from the 401k provider, and then I believe you file form 5498 with code PO in box 13c (rollover of a qualified plan loan offset) which would negate the income tax and tax penalties that the 1099-R would indicate.