I think they finally learned how in 2000. Paul Harvey did a segment on it.
I think I can corroborate that because I read an article about it in Scientific American around that same time. What they call “Damascus steel” today is really just pattern-welded, imitation Damascus. The method was lost because it was held so proprietary that when the people who knew how to make it died, they didn’t pass the secret on. And only recently did they find out what the material was composed of. A carbine lattice, strewn throughout the steel.
Carbide lattice, that is.
I hunted for the Paul Harvey segment and found this instead:
https://www.bladeforums.com/threads/wootz-damascus.987857/
“Wootz? Damascus?”