I have disposed of animals through Events, however they are not becoming Inactive.
Tip: If the animal is marked as agisted it can't be disposed of by using a normal Sale/Death/Disposal event. Use an Agistment End event instead.
Select the animals that you wish to make inactive on the main animal list.
Step 2.
Go to Events
Step 3.
Click on Change Status, alter their status to Unassigned.
Step 4.
Redo the Sale/Death/Disposal Event.