I don't think you contributed to a new Roth IRA, I think you did a rollover. This is a nitpick, but an important one, since contributions are limited to $7000 or $7500 in 2023. If it was a contribution, or was recorded as a contribution by the new IRA instead of as a rollover, you have a much bigger problem.
Then, did you rollover the entire $60,000 (making up the difference due to withholding from other funds) or did you only rollover the net amount. If you only rolled over the net amount, then you have a partial withdrawal and a partial rollover. You would select "I did something else" with the money and then you will have a chance to enter the rollover amount and the kept (withdrawn) amount. Only select "rollover" if you rolled over the entire $60,000 by making up the withholding from your other funds.
I agree that either the 1099-R used the wrong code, or maybe you entered it incorrectly, assuming it was a fully pre-tax IRA being converted to a Roth IRA.
