This might be the one league or invitational tournament rule that I totally despise. The "last batted out" or "last out" is poor language. While it is usually accompanied with a "only two outs," there still is the possibility of the CR being on base when he/she is due at bat.
I've always tried to encourage a solution like Mike proposed: the one who is closest in preceding the catcher/pitcher and not on base (which is the ISF rule for the catcher with two outs only) OR use the ("new") ASA slow pitch rule: anyone can run, but if they are on base, remove them from base, call them out, then let that person have their time at bat.
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