According to the Form 1099-R instructions, code 7 would not be correct if you are under 59 1/2 years in age. But, entering the Form 1099-R as you received it with the code 7 should not cause any issues in your tax return.
Code 7 can be used when no other code applies. Code 2 would normally have been used due to your age, but the custodian would have also had to know that the distribution was going to be a Roth IRA conversion.
It would probably not be worth the effort to request a corrected Form 1099-R from the account custodian.
@jeff B1
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