Veteran's Education Benefits usually come in three pieces, Tuition and fees (paid directly to the school), Money for housing (if you’re in school more than half time) and Money for books and supplies, paid to you.
For that question, in TurboTax (TT), only the Tuition and book amounts are Veteran's Education Benefits. Do not include the monthly housing allowance.
The purpose of the question is so that you cannot claim a tuition credit for expenses covered by tax free GI benefits. So, only the tuition and book benefits count against you.