We employ metastable ultracold 173 Yb atoms to study dynamics in the 1D dissipative Fermi-Hubbard model experimentally and theoretically, and observe a complete inhibition of two-body losses after initial fast transient dynamics. We attribute the suppression of particle loss to the dynamical generation of a highly entangled Dicke state. For several lattice depths and for two- and six-spin component mixtures we find very similar dynamics, showing that the creation of strongly correlated states is a robust and universal phenomenon. This offers interesting opportunities for precision measurements.