Uncaught 3rd strike with 2 outs

[ALStripes17]

13-14 year old Dixie baseball ...Bases loaded with 2 outs in a close game, batter strikes out with an uncaught 3rd strike. I give my 'no catch' mechanic and all runners take off.

F2 airmails 1B as all the OF, F1, and F5 are jogging off the field thinking the strike out was the 3rd out. All runners score while BR ends up on 3B. During the entire play, DTHC is screaming "1B is occupied, 1B is occupied!"

Play dies down and has said his catchphrase about 15 times now. I look over and say "2 outs Coach"

"But 1B was occupied!!"

"2 outs Coach"

Next batter flies out to end the inning and the coach has been constantly saying "but 1B was occupied, why wasnt the batter out" to his assistant coach.

He calmly walks up to me at that point and just gives me a blank stare. I tell him batters retain their right to run if 1B is open OR there are 2 outs.

He continued his blank stare and was dumbfounded by the rule. Then finally asked when the league added that rule.

Me: "I venture to guess early 1900's"

He laughs and says he'd never heard it before and walks away.

Where do they find these people?!?