1997 CR 250 Honda Forks disassembly help

Pull the bottom tube out hard like a slide hammer/bearing puller. Doing it in the vice might not be best option

Your old bushings are probably worn to the point that the piston bushing is pulling through the metal slide/engagement bushing instead of knocking out of the upper tube.

Clamp the lug in your vice instead of the upper tube and heat the area where the seal and bushing seat with a torch then slide hammer it like you're trying to break it. When it sticks it's because the Teflon is being peeled off the piston bushing as it pulls through the metal slide. It will eventually pull all the way through and come apart. Obviously, all bushings will need to be replaced.

Possibly a shot of brake cleaner in the seal/outer tube junction, or PB Blaster?

That seal will pull free. Might have to get it hot with some map gas. Go crazy pulling and sliding, slamming, it is going to be hard to yank and it will destroy the washer underneath.

The bushing is going to stay in the fork and that will be another problem. The steel tube and seal will come out but what is directly underneath the seal is the problem. The bushing is frozen, the bushing along with the washer is what pulls the seal out. You will be forcing the lower bushing past the upper frozen bushing, pull hard.

Forcing the steel out will destroy the seal and washer but you have no choice and they need replacing anyway. After forcing the steel tube out the frozen bushing should be visible.
Use the head of a screw and some vice grips to remove the stuck bushing underneath.
Grip the screw with the vice grips and use the head of the screw to gently catch the lip of the bushing down inside the fork. Tap the vice grips with a small hammer to pull the bushing out, don't let it get cocked. Remember it's stuck so heat will help, get it hot enough to sizzle spit.