In my experience, it doesn't have easily visible eyes like Catts. Try not to cover the bases of the pbulbs (though if all is well that wouldn't stop it, as long as it isn't deep) and yes it will throw out another growth- or several.
Could you possibly securely fix a couple stakes in the pot, and wire the plant to the stakes while it sort of sits on top of the media if it doesn't have roots? It should soon fix itself in.
You said you are not trying to grow it using the semi-hydroponic method.
Den phals do best for most people in a pot just big enough to hold the roots - they should be top-heavy and fall over easily. Den phals grow best in small pots with very large medium, warm temperatures and frequent watering.
That pot is at least six times too big for that plant. That puts the roots at risk of rot. They need excellent air at the roots, and that is hard to achieve when overpotted, even in LECA.
I would repot now into the smallest pot into which I could squeeze the old roots - perhaps 3" / 7.5cm. A very shallow and wide pot would work, but most people don't want to take up that much space with one plant.
Den phals are warm growing plants. Evaporative cooling from the surface of a clay pot will not be helpful for them. I wouldn't use clay unless you have a very warm growing area.
They need just the right amount of water when pushing new growths; too much and they rot, too little and they dry up.
I would guess your plant is staying too wet, and that may be why the new growth rotted.
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Thank you estacion, I understand that these are significantly overpotted, my question is more about the depth and "nodes/eyes" for new growths. This is more of an experiment as these were cheap plants and I'd like to see if the LECA makes it possible to over pot and leave these in the same container for years. I think the old growth came rotted because it was covered somewhat by the old media. How deep should dens be potted? I've moved media away from the base of the plant just in case