Thank you for providing further information! The hand-out button should not disappear again. I recommend having PowerSchool Admin within the district reach out to PowerSchool Unified Classroom Support to provide this information. This will allow PowerSchool Unified Classroom Support to view the settings within Unified Classroom with the district.
My admin was able to work with Powerschool to enable it... I know there were some issues on the POwerschool side and it took a little tie to fix, but we are finally good to go. :)