My 25 year old OTTB was on a similar diet. He had EOTRH so had trouble with hay but did still eat some hay. What kind of hay is he getting? Even if it’s difficult for him to chew, and he quids some of it, he is likely still getting some nutrition from it. I use to hoard second cut bales when I could get them and save them for him.
He was getting 10 lbs of TC Senior with 5 lbs of Blue Seal Hay Stretcher, and daily bute, on the day he died.
If I were you I’d add some hay stretcher and see if you can get the softest hay possible for him. Alfalfa is great, but it can be quite stemmy. It’s possible he isn’t digesting it quite right.
And yes, I’d run a standard blood panel. Also, depending on the type and results of Cushings test bloodwork he had, he might still benefit from being on Prascend. He looks like he doesn’t just have weight loss but is also losing topline. Obviously this is common in older horses, but it can also be an indicator of cushings. But if he has some malfunctioning organs, that could also be why he isn’t gaining.