"The soil they came out of was VERY damp in the middle. I actually couldn't believe how damp it was."
There is a bit of contradiction in your details - "I never watered" and "they were watered twice" .
The gritty mix should drain pretty fast when watered, should see water pour out the bottom almost immediately. Makes me think the mix is not open enough because it's staying damp. Unless it's mostly in shade and there is no air circulation, it was not allowed to dry out between waterings. Doesn't matter if it takes more than 2 days or a week to dry out. The mix should be almost dry before watering again.

I'm thinking the rot started in the damp mix. The pups may have had wounds when repotted and the damp set up a bacterial stage. Pups may not have had any roots or enough of them to soak up any of the dampness around them.

Aloes are pretty tough. I have a mass of them blowing around the yard for over 3 years without a pot and still going strong. I don't waiting to repot is the issue, it's the juggling of mx, watering and enough root growth. Just adjust your watering to when it drys out rather than a schedule. Some folks use a wooden chopstick to check dampness a few inches under the mix line.

You can cut back to non-rot and try and root that. Let the end callous, then set on top of mix. Mist once a day and see if rootlets form. I've had other types of succulents (leaves, stems) root out sitting on a tray for a month.

Hope some of this helps.

Sorry it was late last night when I posted. I watered twice AFTER they were repotted in the gritty mix, NEVER watering them in the original pot from the store. When I pulled them out of the original pot THAT soil was unbelievable damp. I didn't water in the gritty until it was dry (using a dowel I guess I should've posted that b4 sorry) my mix usually needs watering every 4 to 5 days not on a schedule but I will say that's when just about everything I have needs watering except for two regular house plants that seem to really suck up the water which is 2 to 3 days. I appreciate your help.....am I wrong In thinking that for usually happens very quickly? I am embarrassed to say how long I waited to repot but unfortunately life happens and I have had only 3 days off this past month and I had gotten a three day weekend two weeks ago so working all the other days straight. Not trying to make excuses but literally I would've thought any problems would've come out before hand. :( wouldn't be the first time I've been wrong. Anyway the mom plant looks to be doing fine along with one larger pup with her. The three pups that didn't make it ð¼ two had decent root systems one had a start of root from where he broke off from mom. Actually he looked the best out of the three. So (sigh) hopefully I don't kill the last two. Any other tips?

Guess I should be embarrassed, too. I didn't repot my bigger aloe vera plant for 3 years.....that was also just laying on its side without a pot. :) It survived and even flowered like that, a testament to their toughness.
I would say, without seeing your set-up or plants, to let them dry out checking mix with your dowel and acclimate them to a sunny spot to reduce dampness and encourage growth. Most of a plants' recovery is just patience. :]

Thanks

Well I just found out what I did wrong!! Apparently not checking well enough for bugs!! It is kind of hard to look in between the aloe leaves if they've been grown in good light which that one had. They were right on top of each other with no space Inbetween. Atleast they were seperated. I don't understand how I didn't see them before. I pulled on a leaf and it pulled right off. So I was like uh oh. And pulled the plant off it looked like white fluffy mold on the roots. So I figure it's gotta be them. They suck!!!