Incorrect State on current W2, also on prior year w2

In doing 2018 taxes in Turbo Tax I notice my state is incorrect. Checking my prior year W2 it was incorrect.  I filed NC and payed NC despite KY being listed on my W2.

 

What does this mean and what should I do? I'm curious how TurboTax doesn't flag this discrepancy when filing. I assumed the checks it was performing were for things like this. I simply missed this last year.

 

I'm just not sure how to proceed with both current year and what to do about previous year. Does this literally mean that KY with held state taxes but then NC accepted a tax payment?