Update:
I took a water sample and the fish (now deceased) to the LFS where I got him. This LFS is not a big chain and a local expert who gets a small shipment of fish in every week and specializes in pretty amazing coral. He sells out of his fish every week and there are zero reports of fish with velvet or ich on any reviews or the many local online groups that recommend him.
He tested the water parameters and Ammonia came back at 0, Nitrite at 0 and nitrate was around 7. He dipped the fish to see if parasites would fall out of his gills and none did. He stated no parasites or normal signs of velvet or ich appeared on its body. Something was wrong with the fish but the good news is it doesn't appear to be something that will affect the Clownfish still in the tank who is still looking awesome.
He will receive more Clownfish in this week and said he will replace the one I lost free of charge. He also offered to quarantine the new one for me if needed. I understand everyone's fear of a LFS saying whatever it takes to makes sales but this guy does not work that way and doesn't need to.
I will continue to monitor the parameters of the tank and monitor the remaining clown but I feel will better about the current state of the tank.
Thank you to everyone who took the time to reply. Special ty to
@brandon429,
@N1tew0lf1212,
@Dr. Reef (read his study on bottle bac, hard to argue true science),
@MnFish1, and
@Tamberav for working to assist.