You are confusing between particular consciousness and the all-pervading consciousness of Brahman. The particular consciousness is responsible for the thought I am that, I am Setu, I am engineer etc. This will not survive death while the all-pervading consciousness is independent of time and body.
Shankara explains in his bhashya of this verse in detail. See the last paragraph
Brahman in association with avidya appears as the elements, which are
transformed into the body, organs, and sense objects, consisting of
name and form. They are like foam and bubbles on the limpid water of
the Supreme Self. With the aid of these elements the self comes out
like a lump of salt. As from water, reflections of the sun, moon, and
so on arise, or from the proximity of a red cotton pad etc., a
transparent crystal turns red etc., so from the limiting adjuncts of
the elements, transformed into body and organs and sense-objects, the
self comes out clearly as an individualized entity. Through the
instruction of the scriptures and the teacher, these elements, which
are the cause of individualization, merge in Brahman, as rivers merge
in the ocean. [Technically, this should read as appears to emerge and appears to merge etc.]
DESTROYED: When the elements are destroyed, this individualized
existence is also destroyed with them. As the reflections of the sun,
moon, etc. and the colour of the crystal vanish when their causes the
water, the red cotton pad, etc. are removed, and only the sun, moon,
etc. remain as they are, so the endless, infinite, and limpid Pure
Intelligence alone remains.
No MORE CONSCIOUSNESS: That is to say, no more particular
consciousness. "No more is there such a thought as: I, So-and-so, am
the son of So and so; this is my land and wealth; I am happy or
miserable. For such particular consciousness is due to ignorance, and
since ignorance is absolutely destroyed by the realization of Brahman,
how can the knower of Brahman, who is established in his nature of
Pure Intelligence, possibly have any particular consciousness?
