Ok, I checked my simulation again and could reproduce your results after enabling the saturation in the Altbus block. And you are right the simulation produces '0' as output but already a VHDL simulation showed 255 (decimal) or 0xFF (hex). What is a result I would expect.
To explain this here what happens:
input to AltBus:
-32 (10 bit signed decimal) = 11 1110 0000 (binary) = 0x3E0 (hexadecimal)
convert to unsigned
992 (10 bit unsigned decimal) = 11 1110 0000 (binary) = 0x3E0 (hexadecimal)
saturate, then 992 > 255:
255 (8 bit unsigned decimal) = 1111 1111 (binary) = 0xFF (hexadecimal)