Sources close to the situation tell us Bam was hospitalized in San Diego earlier this week. He then tested positive for Covid while in the hospital ... and since then we're told doctors decided to put him on a ventilator. He's being treated in ICU, but his condition is stable.

As we reported, Bam's been in and out of rehab this year after he had completed a one-year treatment program for drug and alcohol abuse.

Our sources say during one of his stints in rehab, he befriended an attorney who convinced him he could get him out of the court-ordered treatment and "free Bam."

Since then, we've seen him partying it up in Atlanta in September, and hitting Las Vegas the following month. We're told Bam never completed his court order and many people close to him were concerned for the former 'Jackass' star.

Our sources say the so-called "Free Bam Movement" -- which was fueled by online speculation his family put him in a conservatorship similar to Britney Spears -- really confused Bam and hurt his recovery process.

We're told it got so bad, his family and temporary healthcare guardian -- who's a longtime family friend -- started receiving threats over the summer, and had to address it publicly.