No, you destroy your data integrity if you delete the user when they are a reporter or assignee.
Bulk change is probably blocking your change because the "do not edit" flag is set on the closed status on your issues. You have four basic options:
1. Reopen the issues, reassign them, reclose them
2. Modify the workflow so that the "do not edit" flag is not on the closed status
3. Modify the workflow to add a transition from Closed to Closed, and goes through a screen with the assignee on. Bulk-edit can transition those, and you can change the assignee
4. Forget it - inactivate the dead user, remove them from all groups and roles, and move on. They won't apply to your license limits and you don't need to go amending user data, and best of all, you get to keep all the user information from where they commented/updated etc (with a deleted user, all you get in the history is a user login name)
(2 and 3 require workflow edits, but both can be done in draft mode)
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