@SChampl578:
Best information so far is that the error is misleading: the IRS does in fact want Schedule C income included in line 4a (and then subtracted on 4b if it's non-passive income). This seems to be the cause of the problem that the IRS describes in its Known Issues spreadsheet: you should include those amounts but our systems may reject your e-filing when you (properly) include those amounts.
In the end, we can't know for certain if this is only an IRS "business rule" problem until the IRS updates its systems and then somebody successfully transmits an e-filing.
